Investing Strategy & Tips
The rehab strategy for investors
By
Sep 14, 2005, 23:41

The basic rehab strategy is to renovate each property to "doll-house" condition including the addition of appropriate "sizzle" features to enhance marketability. All mechanical and structural systems will be repaired as necessary to ensure compliance with minimum FHA construction standards. This will allow the house to be financed under government program suitable for first-time homebuyers, thereby increasing the opinions available to potential buyers.

The rehab plan developed for each property will pay particular attention to curb appeal, the kitchen, and the bathrooms. These areas of the home are critical to the overall success of each project. all other areas of the houses will be cosmetically improved to produce a final product that sparkles. Certain sizzle features will be incorporated into each house to induce interest and increase demand in the marketplace. Unique and unexpected items will be added, as appropriated. Consideration will be given to such things as a hot tub, security system, bay windows, skylights, microwave oven, mini-blinds, garage door opener, and ceiling fans, to name a few.

All rehab work will be completed by experienced professionals from your local area. This will ensure that all tasks are finished promptly and with high-quality work. Items identified in the rehab plan will be competitively bid. The work will either be done through general contractors or through a handyman/subcontractor arrangement. All items will be paid on a materials plus labor basis. In no case will lump-sum bids be accepted. All contractors will require your written approval of change orders for items outside the original scope of work.

Each rehab project will be closely monitored. Work progress and expenditures will be tracked and recorded wil be maintained in a project file. Photographic documentation will be made, as appropriate.