Do you enjoy rehabbing houses and is it profitable?

Answer 1

It is extremely profitable, especially if you choose the right neighborhood and the right house. In an area where real estate values are rising, and there is very little open land available for building, and there are some architecturally interesting old places to rehab that can be bought for a reasonable price, you could become a millionaire in no time at all.

Of course, you have to do a really good job of the rehab, and not skimp on research or materials or execution. Make it as much like the original design as you possibly can, but include modern plumbing and electrical fixtures. If you get good at this sort of work, you will be rolling in money!

Answer 2

There are better ways of spending your time, depending on what you feel your time is worth. I have rehab'd houses in the past and made a few thousand bucks but overall I have found it's just not worth my time.

Example: Couple years back I bought a high rise condo for $359k comparables where selling at $435k and I had estimated the property to need $20k give or take to bring it up to modern standards. So, I acquired the property (Making about $7k on the loan that I gave myself but paying most of it back to the realtor who found the property) and rehab'd it in 3 months. I ended up selling the home 2 months later for $440k but overall rehab costs came to just under $24k. It was on Ocean Blvd in Long Beach overlooking the queen mary. Now it's worth close to $1mm and looking back I wish I would have held onto it.

Here's what it looked like on paper

$440k - $24k (cost of rehab) - loan payments for 5 months (1896x5 = $9840) and realtor fees of 4% = $17,600.00

This equals a profit of $53,536.00 all said and done. Break that up over 5 months and I'm left with $10,707.00/mo. minus capital gains and I was left with about 5k/month.

This is an example of one rehab that I did with a potential of 80k in profit at first glance. Again, rehab is hardly worth it's time and unless you are a licensed contractor getting the labor and parts for the bottum price, I wouldn't waste my time with it.

Btw... I prefer development. Much more profitable and you really don't need to do any legwork on it. If you have the funds, I highly suggest moving into development, whether commercial or residential. 4 units are a great way to go for a beginner.

Answer 3

I enjoy rehabbing house because it is very profitable! You can not loose with real estate. The value to acquire now will mostly always be less than the value it will be worth in the future! You could mostly always sell for a hefty profit.

Answer 4

I like fixing up my house. It has been profitable. I would like to go into the business of flipping houses, but I don't have enough capital to start.

Answer 5

If you are purchasing HUD homes they are usually in terrible shape and usually not the best neighborhoods. You are better off buying pre-construction in a good area that is growing and by the time construction is finished you will have earned more equity and you didn't have to do all the work.
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Answer 6

Yes, if you sell it for more than your paid for it plus the money you put into it fixing it up.