Ultimately, it's about the numbers in the deal. Can we buy the property for X? Can we fix it for X? Can we sell or rent it for X? We look at the neighborhood. What's happening there? Is the neighborhood in disrepair or does it look healthy? Is it a neighborhood where businesses thrive and people are working, or is it run down?
If we completely rehab the property, will it become comparable to other homes on the block or will it be the best and most expensive, and thus hard to sell? Will hold proper value if we add bathrooms or bedrooms? Is the outside appealing or does major exterior work have to be done? Do have the right contractor for the job? Do we have other investors who are interested in helping us fund the project?
There is so much to consider. But when it comes to finally making the decision to acquire a property, then the fun begins. The transformation. Do we completely re-do and replace everything? Or do we just add a little lipstick and move on to the next?
We are currently completing a rehab that has been quite a transformation. A traditional bungalow on the northwest side of the city, had been vacated by its owner, who had become a hoarder. Before any actual work began, we had to clean out each and every room, that was filled with everything from treasures to garbage.
It will be satisfying to see it come to completion within the month. Below are a few before and afters of this interesting project.