Rehabking a rental vs. a flip. How is it different?

[Carl M.]

What are some ways that you would rehab a property differently if you were renting it versus flipping? How would you do the flooring different? Kitchens etc?Any input would be appreciated.

[Brandon Ingegneri]

It honestly all depends on your buy in number. You make all of your money the day you close on the buy side, not on the sell side, or when you rent out a unit.  The cash flow or return on your investment on a flip all hinges on if the property is bought "correctly".  Having said that, many people believe that using mid level materials on rentals is the way to go.  I have found that if I have enough room in the property because I bought it correctly, that I can use a little bit of a higher end material that still has the durability that I am looking for.  If I am able to put granite countertops in an apartment with stainless steel appliances, I am going to do it.  This allows me to be more selective with tenants, and command a higher rent.  If I paid too much for the property, then I would be unable to do that, and would have to use a slightly lower quality set of materials.  

Regarding a flip, I tend to also go with mid range materials. I have found that it is more important that everything is complete and clean rather than crazily high end.  There are a few little touches that add value that are very inexpensive that I do in flips that I do not do in rentals.  IE: chair rail, slightly higher end light fixtures, and things of that nature.  

In both types of deals, the bathrooms are tile, and I will use hardwood floors to maintain a certain flow if some already exist.  In rentals, many of the floors are an industrial grade vinyl that I purchase in bulk.