Rehabilitating a property is a more in-depth project than typical fixes and flips, during which someone could likely live in the house. Savvy investors understand the potential profit of an investment property and the value others may not be able to see due to the property’s being in poor condition or a lack of features that are now standard in rental housing. Therefore, when considering properties that require rehabilitation, it is absolutely essential to understand what improvements and restorations are necessary for a rental in the Richmond real estate market vs. those you would make if it were for your personal use.
You will also need to know the plan for your exit strategy. Will you be holding the property as a rental or placing it on the market for resale? Is the neighborhood up and coming with rentals, or are properties being snapped up by buyers as quickly as they are listed? Market trends can influence the best course of action for your investment property. Knowing the answers to these questions can help you get started and stay on track. No matter which option you select, fix and flip or long-term rental property, it is always helpful to have a guide, so read on as we explore these six tips for handling low-budget rehabs in Richmond.
Good Bones
One of the most critical factors of an investment into low-budget rehabs in Richmond is avoiding money pits. However, it takes a trained eye to spot the red flags that ward off more experienced investors; this is why a professional should be involved in the inspection. And don’t forget, no matter how good the bones are, as an investor you will need to focus on finding the best possible location. While you can improve an investment property, you can’t just pick it up and move it when you realize there is a problem with the location, such as smells wafting in from nearby industrial zones. Again, professional buyers like those at RVA Home Buyers can help you find the right investment for your goals. When you work with one of our professional buyers at RVA Home Buyers, you are working with a full-service in-house team of industry specialists, including everything from inspectors to attorneys, title and closing specialists and even a property management team.
Numbers
When you add it all up, the numbers are the bottom line when considering low-budget rehabs in Richmond. Don’t forget to add some padding to your budget for the unexpected. Determining the risks associated with the subject property can help you decide, but on average, you will need somewhere between 5 – 25% of the budget allotted for the unexpected. For example, an older property may require upgrades to bring wiring, roofing or plumbing up to code. Now, when you work with professional buyers like those at RVA Home Buyers and their team to help you step by step, you can relax knowing you will stay within your budget on your low-budget rehabs in Richmond.
Timeline
In addition to the numbers you need to know, you will need to understand the timeline you are facing before seeing any income from your low-budget rehabs in Richmond. Holding costs such as the mortgage, taxes, insurance, and utilities don’t stop because you are dealing with contractors who failed to complete their work on time. Real estate investors require a budget based on a realistic timeline to understand the holding costs they’ll need to calculate to maintain an investment property during the rehab process. Otherwise, these expenses can creep up on investors and slowly deplete the profits. Working with RVA Home Buyers means knowing your project will be on time to earn you the highest possible returns on your investment dollar.
Negotiations
When you seek to invest in low- rehabs in Richmond, there is often room for negotiation in the asking price. Most importantly, you will need to predetermine your budget limits and stick to them, purchasing the best-priced property in the best possible location to fit your goals. Professional buyers like those at RVA Home Buyers have experience negotiating in all types of settings with all types of individuals and know how to read people and deal fairly with sellers while making good deals for investors. The seasoned professional buyers at RVA Home Buyers are experts at negotiations.
RVA Home Buyers
The professional buyers at RVA Home Buyers are highly educated professionals and accomplished local Richmond investors who are passionate about helping our neighbors, improving our community, increasing property values and being a part of your success. At RVA Home Buyers, when our investors succeed, we succeed. In addition, you will benefit from the vast connections at RVA Home Buyers built over years of working with skilled local industry pros with the mindset of investors who understand your need for a quick, reliable assessment of investment properties and the best possible outcome for your rehab project. Call RVA Home Buyers at (804) 420-8515.
