What Do Rehabbers Look For
When rehabbers look for properties, what do they want? do most like a major dive with lots of work to be done, or are they looking for a quick fix. Or are they just all different. THe reason I ask, i have many leads in the southern florida, that I am looking to flip on to a rehabber. if anyone can anwser my question or is interested, let me know
Eric
A professional rehabber is looking at the deal and not at the condition of the property. That may sound a bit strange but what it means is you look at the deal, can you buy a house with only cosmetic fix up and in the end walk away with the profit you desire, or because it is only cosmetic will the numbers not work. The reason they might not work is based on things such as competition in your area, if there is a lot of competition in your area for rehabs then the cosmetic rehabs are not going to last on the market and the prices paid for them will most likely be too high to allow you to buy them cheap enough for the numbers to work. If you are has a good housing market, cosmetic rehabs will be bought by people who will live in the house. All these factors cause rehabbers to have to buy the really bad houses that the average newbie won't consider and the homeowner won't consider.
Rehabing as in all realestate is a supply driven economy, it is the old economics 101 principles of supply and demand. If there is an axcess of cosmetic rehabs in your area they will have to sell cheaper. If the cosemetic rehabs are in short supply based on the reasons stated above they the numbers won't work and you will be force to look at the next worst tier of properties, or the next or the next until you find the tier that can make your numbers work.
That's what I am finding in my market - the Detroit suburbs. The cosmetic rehabs are going for too near to market value to really make it worthwhile. Much as I don't want to as a beginner, I might have to start looking at the next worst ones.