Systems in place for rehab

[Steven Bays]

I am really trying to break down the Brrrr process and have a repeatable process to follow and feeling more overwhelmed the more I think about rehabbing.

High level, it feels simple but the more I think about it, I am getting an analysis paralysis on this topic. I am hoping someone can share their process or analysis. Anyone else felt this way starting out?

I am interested in buy and hold so not interested in rehabbing to flip so when I look at a SIngle or multi family what are your all’s systems/processes you go by. What do you feel is most important for greatest return for money put in? Minimums for rental without being a slumlord. I have read a lot and want to get actual feedback from people too.

When do you know you want an inspection ordered in a property you aren’t sure on?? Is it just an educated guess by what you see first?

Do you use a checklist on your own and cross reference with the inspection?

What do you typically look for initially before determining if an inspection is worth ordering?

Is there a spreadsheet I can download that can give me the best idea of rehabbing checklist?

After all of this, you actually begin the rehab which I will ask some more questions but hope some folks can point me towards the light here.

Thanks you all!

[Kuba F.]

The way to get over your analysis paralysis is to break it down to simple steps and then make yourself take one baby step each day.  Haven't walked any properties yet?  Go look at a few in distress.  Haven't talked to a contractor?  Go talk to a few and ask them if they work with investors.  Don't know what you'll qualify for?  Talk to a lender.

The reason you get analysis paralysis is that you're afraid of making a mistake, or looking like you don't know what you're doing.  You will make mistakes, that's part of it, but when you break it down into small steps, the idea is that you will reduce the risk of any one decision, and each step gets you closer to the end.  The process itself is simple:

Find properties 

Analyze them for potential based on pictures

If they are close to meeting your criteria, visit them and identify issues.  Everyone has their own spreadsheet, I like to use this one: 

https://www.biggerpockets.com/files/user/kubaf/file/rehab-walkthrough-estimation-checklist

Roughly estimate those costs and plug it into your analysis again

If after a rough estimate you come up with a price that is within negotiable distance make an offer

Get an inspection and solicit rehab bids to get a better estimate

Plug that into your analysis again

If you need to renegotiate or cancel the contract if it doesn't work, otherwise close

Rehab the property

Rent the property

Refinance the property

You already know the big gaps in your knowledge that scare you.  Address those first.

Good luck!

Kuba