Many real estate investors turn to rehab houses to make a profit. Rehabbing a house can provide a substantial return on your investment if you know what you are doing. However, if you do it incorrectly, you could be throwing money away. Here are a few tips to making a profit with a rehab house.
1. Make Your Money on the Purchase
Good investors make their money on the purchase of the house instead of the sale. No matter what you do to a house, you can not increase the value very much on your own. Your job is to find the best deals on the market. Find someone that virtually wants to give the house away. This will give you a better chance of turning a profit after it's fixed up.
2. Keep it Simple
You do not have to do anything dramatic to a house to make it sell for a profit. With most rehab houses, you just need to stick to the basics and make sure it looks good.
3. Kitchen and Bath
Focus on the kitchen and the bathroom of the house. These two rooms will be the most responsible for selling the house for a profit.