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.
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 tenants 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, LLCs streamline approach to long-term buy and hold investing at www.padeals.com.
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.
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 tenants 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, LLCs streamline approach to long-term buy and hold investing at www.padeals.com.
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