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Updated over 5 years ago,
How to not underestimate rehab if a property looks good on paper
I just recently found a property that goes for 110k in an area that average rents about 1700/month. But there's not a lot of photos on the property and the ones showing only mainly shows the exterior (and the exterior alone kinda tells me this house needs quite a bit of TLC, tall grass, dark and dated windows, discolored roof, etc.)
i ran the numbers and i can actually average around 200 a month on this SFH, but im worried that i won't have enough cash on reserve for REHAB if the rehab alone is going to costs me almost as much as the property itself. What are some things experienced investors do when they are in this situation? I understand if you have many deals under your belt you probably can already gauge how much you will be putting in without killing your budget. But what advice do you have a for novice that's starting that came across a potentially great first deal but is worried about the rehab budget?