Have you ever got sick doing a rehab?

Question

Has anyone ever purchased a property then come to relize that there is alot more work that is involved?  I just purchased a property that was trashed a complete rehab job. I guess it's the thought of all the work that lies ahead. I will be in budget but what if somthing big is found. I just get sick in my stomach. I still should profit $40,000 I will be happy with $20,000 I"m calling a few investors today to see if they would take it for only 12,500 more than i paid for it. I never done a rehab this big before. we'll see. has anyone been in this situation before? have you ever lost on a property.

Lynn Z · Answer

if you can only make $6000 can't you FSBO the house?

Ken Hicks · Answer

Westley, Your right... I sent out about 10 emails to realtors asking if they want it to buy, no of another investors that might want it, or if they could list it.It's been 2 days and One realtor told me she could list it and I would profit $10,000 right now I would settle for $4,000 I guess it depends how fast they can close. Thank god I stuck to my guns when I was offering the price to the last owners. just think if I increased it up $5,000 like they wanted it to be. Well i'm not out of the woods yet. we'll see what happens. If the next guy is a DIYer he should make a killing.

Lynn Z · Answer

That's funny.  We bought a house from a daughter of a 90 year old man that built the house in 1940 and died in it the previous year.  It took 4 people non  stop to get that place cleaned out. The daughter didn't want anything her father left behind.  Also there were lots of cats and insdie cat damage and we had to clean and coat the tile with outdoor porch enamel to cut the smell.  You just couldn't get to the bottom of it.  I can laugh now but it was a mess.
It's a lovely Nantucket bungalow now and the envy of the neighborhood.

N/A N/A · Answer

When I read the post title, I couldn't help but remember something. Once while rehabbing my own house I got physically ill.

I bought a "fixer-upper" when I got married 3 years ago. Actually, "fixer-upper" is kind of a gentle term for the condition this house was in. The previous owner had died about a year before I bought it, and everything had just been left as it was. That meant a full refrigerator had been left with the electricity off the whole year. I don't remember smelling anything quite so nasty as that...

So yeah, I got sick doing a rehab.

Ken Hicks · Answer

No I can't FSBO I live an hour away. it's to hard to show the house.

Lynn Z · Answer

We had to sell this summer and FSBO'd our houses.  Sold one in 8 days and one in 14 days through open houses.  Just 2 open houses each 2-5 on Sunday.  A tube with color  flyers are fairly easy.   Closing costs eat up so much of your profit even when you're selling yourself.   You could always state "broker protected" and pay 3% to agents bringing you a buyer.  Most are happy to do this if they have someone  but I found zero response or interest at 3% because they'd rather do one transaction at 6% than mess with FSBO's at 3%.  Go figure.

Dick Green · Answer

I usually tell my clients to buy low enough that it's profitable to place the property back on the market the next day without lifting a finger.  The concept is to not glean the field and leave enough of the crop so as to make it attractive to passerbys.  Don't beat yourself up!  If you're not feeling it, dump it.  But, as the work input goes up....so does the price.  Most purchasers will understand.

Ken Hicks · Answer

Yes I didn't know what to look for in a rehab. leason lived leason learned. I now know the type of property I can rehab. I now know what type of property to wholesale. this property has been on the market sense the 4th well see how that goes. as it stands after using a realtor and paying all those taxes and what ever else is there I will still make $6,000 thats if i get full price. which I think I will. I don't know about this realtor though, it sounded like she wanted to list if higher, but when i explained my situation then we met she had a different list price. maybe she is looking for a fast sell. so am I we'll see. thanks everyone.

Jim & Michele Wilcox · Answer

Many times rehabbers that do the work themselves find that the task seems mountainous. And for one or two people, it is. The saying "a true rehab professional hires all his work out".

If you can, find a contractor who can do the work for you. Your keeping an eye on him is a lot less stressful than you doing all the work. It may cost a bit more - but you will probably get the job finished quicker and make a little more money than if you do all the work.

If a big project makes your stomach turn - maybe you aren't quite ready to do rehabbing and should do some assigning or wholesaling.

Good luck ...

Wes Tuinstra · Answer

I think that just reading your post brings back bad memories
for many people! :cry:

There are always mistakes to be made. And we will always
make them.

We learn from mistakes. That is how fresh knowledge comes.

Schools emphasize perfection, and grade "making mistakes"
as a bad thing. In life it is not so.

Analyze each mistake you made, seek to learn its lesson,
and then move on in life.

Do not be "sick" over a property. Just dump it -- as you are doing --
and say "Next!"