Most of you are probably wondering what it looks like for us to rehab a property. In the video above, Craig Jennings, cofounder of BuyMemphisNow, goes through a project we completed a few years ago. When we bought this house, it wasn’t in that great of shape. We ended up needing to replace the Roof, fixed up the floor, redid the kitchen, and renovated the bathrooms. All these improvements help create the cash flow that we want for our investors.
There are a few things that we look for before we move on a property.
One of the first things we look for when we are evaluating a property, is the neighborhood that the house is in. Generally, the best cash flow houses are in neighborhood that has a higher ratio of Home Owners to renters. This allows the renter to feel safe in the area knowing that the turnover is much lower because home owners typically aren’t moving that often. This adds stability and longevity to your potential rentals.
The next thing we look for is the condition of the floors. Typically, we prefer houses that have hardwood floor instead of carpet. Hardwood is easily rehabbed and it much more resilient that carpet. Typically, carpet would need to be replaced every 5 years, but a great hardwood will last so much longer.
Then next area that we focus on is the kitchen. You want to ensure that you put some attention on the kitchen area. The kitchen will be used very often by your tenants and the kitchen can often sell the house. You want to make sure that you update the cabinets and hardware. The last thing you want is to have old outdated look in the kitchen. A modern and sophisticated look will bring you a higher rental price and thus a higher monthly cash flow
The last area that we must focus on before we finish a rehab is the bathrooms. The bathrooms are often an overlooked area, but a rehabbed bathroom with modern convinces can be the difference between a middle tier rental and one on the upper echelon. You’ll notice in this one we retiled the shower, replaced the lighting and mirror. This gives the bathroom a classier feel and will wow potential tenants allowing you to ask more for you rental.
These are just some of the things that we do when we rehab a property and get ti ready to sell. You will notice that attention to detail is taken throughout the entire process. You don’t want to skip over any part of the rehab process. Every corner you skip, costs you money in the long run, through lost potential income. So, make sure you put everything into the rehab process to ensure financial stability in the future. As always if you have any questions or want more information on our process, feel free to call us at the number listed below