How do you know how much rehab is required for a home you are buying?

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September 10 2010 - West Bloomfield
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The profit on a rehab project is realized on the front end by a good investor. While it is true that the rehab costs can be a large portion of the costs invloved in turning a property around, there are also many other factors to consider such as: 1) Current market conditions and future market forecasting. 2) Immediate market evalution for upgrades/updates--you don't want to under or over improve for the neighborhood. 3) Marketing time for resale. 3) Other significant costs such as property taxes (Homestead/Non-Homestead), sales commission, title insurance, hazard insurance, permit fees/time to pull permits, capital gains tax.

Are you planning on rehabbing the property yourself? Do you have the tools/experience to pull-off the jobs needed? I see a lot of failed rehab projects in various states of repair on the market as foreclosures so make sure you are addressing ALL aspects of the project before you jump into the fray. And by all means align yourself with a good local buyer's agent who can evaluate these and other "tiny little" details that can make or break a good project. Good luck!
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September 10 2010
I specialize in the FHA 203K loans and am closing 3-5 Rehab loans per month.  The majority of the projects are creating instant equity and have enabled the best projects to refinance without Mortgage Insurance shortly after the work is complete. 

That is not to say every project is a winner, but opportunities are all around, if you know what to look for.
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September 14 2010
Unless you are an experienced rehabber or contractor, it will cost a LOT more than you think and take a LOT longer. Rarely do fixers sell for a big enough discount to compensate for all the work needed to bring it up to shape.

Skip properties in bad shape, make you life easy and pay more for something that someone else already fixed. 
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September 13 2010
I'm sure your service is great, but his forum is not intended for a free advertising platform.  If you want to advertise take out a banner ad.
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September 10 2010
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Zillow's guidelines for posting are here. They also have a helpful video on making a great profile on Zillow here. Hope the links are useful.
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September 10 2010
 
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