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Buy and Hold Rehabbing
1. Buy and Hold Rehabbing
Many factors can make or break you as a real
estate investor but one of the most critical is
rehabbing. Now, I am not going to discuss the
pitfalls that can occur during the renovation process
quite yet.
But instead I am going to focus on how you need to
be renovating properties to be used as buy and
hold investments. Renovating properties to use for
long-term buy and hold investing is similar to buy,
fixing, and selling renovations but there are some key elements you must
consider or you will be out of business as quick as you got into business.
First, when it comes to rehabbing buy and hold real estate the main focus
must be on the mechanicals. Buy and hold investing is a long term strategy
and you need to rehab your investment for the long term. Improperly
rehabbing a rental property is one thing that can surely put you out of
business as quick as you got in.
Yes making the interior desirable to a tenant is important but not nearly as
important as the mechanicals. So, the next or maybe the first buy and hold
property you purchase remember mechanicals, mechanicals, mechanicals.
Make sure the plumbing and electrical are up to code and in good working
order, ensure the furnace and the roof are in good condition these are big
ticket items you do not want stealing your first year of cash flow. Buy and
hold real estate investing can be very lucrative when done right and can be
very expensive if not.
2. If you do not pay attention to these items during the renovation and more
importantly during your purchase you may be in for a world of trouble.
Imagine renovating a great property and your tenant moves in during the
month of March. Now, here comes Spring and the rain starts falling. Opps,
you forgot the roof and your tenant has water leaking in all over the 2nd
floor.
Okay, so you get out of that one only cost you $3,000 to put a new roof on
and the tenant is finally calmed down after their things were ruined by the
water leak. Then summer comes along and your tenant places a window air
conditioner in place and as soon as they turn it on all the lights on the 2nd
floor go out.
Opps, you forgot to ensure your electrical system was up to par. The repair
heads back out to the property only to find knob and tube wiring all
throughout the 2nd floor and the electrical panel box needs upgraded. There
goes another $1,500 to fix this mess. Finally, 9 months into this tenant’s
residency in your property and it is getting colder outside and they attempt
to turn the furnace on.
Yep, you called it now the furnace is no good. At this point you are ready to
throw the towel in and never invest in real estate again. This could have all
been avoided if you performed the property due diligence.
Buy right based on the renovation you need to complete. At PA Deals, LLC
we offer a complete turn-key approach to buy and hold investing. We offer
our clients turn-key completely renovated properties ready to go the long-
term with you. These properties have new roofs, new heat systems,
upgraded plumbing and electrical systems. At PA Deals, LLC we focus on
provide you with an investment that will grow your investing business not
put you out of business.
Check out the PA Deals, LLC’s streamline approach to long-term buy and
hold investing at www.padeals.com.
3. Author Zack Wiest
Email social@realestateseminar2011.com
Keyword: PA Deals LLC Real Estate Investing and Rehabbing
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Zack Wiest is owner of PA Deals, LLC. They are a residential real estate
investment firm located in Harrisburg, PA. Though founded in 2006, the
principals of the company have been investing in real estate since the year
2000. You can find out more about us at http://budurl.com/padealsbmpart
Category: Real Estate Investing
Summary: Many factors can make or break you as a real estate investor but
one of the most critical is rehabbing. Now, I am not going to discuss the
pitfalls that can occur during the renovation process quite yet.