The Pros and Cons of Rehabbing Properties

The Pros and Cons of Rehabbing Properties


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Rehabbing properties has become an even hotter trend over the last few years, but is it for you? What are the real pros and cons of rehabbing properties compared to other forms of real estate investment?

The Pros of Rehabbing Properties

1. It’s Fun & Therapeutic

Even when it isn’t fun, it is at least exciting and until you have put in a little elbow grease yourself you won’t realize just how great it can feel to create and renovate. Plus it means getting to decorate dozens of homes in different styles for those who just can’t choose one thing when they go to Home Depot.

2. Bigger Profits

Rehabbing properties often offers much bigger profits than fast and furious wholesaling and definitely bigger chunks of change than rentals.

3. Rebuilding Neighborhoods

Some of you may only be considering rehabbing properties for the money but being able to make a real difference and help improve other’s lives feels a lot better than a $100 bill.

4. Can Be Done in any Market

This type of real estate investing works in any market, up or down. Rehabbing properties means being able to add value, not just buy and hope the market goes up one day.

The Cons of Rehabbing Properties

1. More Risk

There are many ways to minimize risk but rehabbing properties is definitely more risky than some other options if for no other reason than you often don’t know what you are going to find wrong until you get dug in.

2. Money

Rehabbing properties costs money. Get to know what types of rehab loans are available and if you qualify or make sure you have a big reserve fund because things always cost more than you planned.

3. More Time

Rehabbing obviously takes a little longer than just flipping properties on a wholesale basis or assigning contracts. That’s why you get paid more for it, just make sure that you have enough cash to hold you over.

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