Length Of Time To Finish Rehab
On average, how long does it take for you to finish a rehab? Our problem with our rehabs (have only done 2) is that they take way too long. Currently, we are rehabbing a house that we purchased in March & are still not done with it. Originally, my husband was going to do almost all the work (except roof & sheetrock) but since he works 40+ hours a week, he decided to hire someone to do the rest of it. I would like to really get serious about REI, but was curious about how everyone else handled thier rehabbing--whether they hired contractors and completed in a month or what..... I just know that we have lost a lot of money paying the payments for 6 months when we could have had it completed in one and gotten a tenant.
2 weeks
It truly varies depending on the amount of work needed. Rarely are they the same amount of time. If you buy one that is priced very low because it needs lots of work, it may take 3 months. And then it might only take a few weeks if the work load isn't too much.
Dave
Yeah, I think it truly has to do with how much work the property needs, and how busy the contractor is at the time. I've never known a contractor to concentrate on ONE house and finish it, they've just about ALWAYS got 4-5 they're balancing, moving crews between.
I just finished rehabbing a house that required new walls in the downstairs (was just bare studs), new flooring throughout (new tile in Kitchen, new carpet elsewhere), new appliances, all new doors, complete new paint and new roof, and yard work. I work 45-50 hours per week and was able to finish it in about 8-10 weeks of actual work (a few hours a night, more on weekends). I have a partner who helped with a good bit of the work, however. It took longer than I thought (our original plan was August 1), but we were largely done by September 1.
John
there are many variables. how much work is needed, who is doing the work {example: painting- highly skilled or college students}, are you doing the work and how experience do you have, types of material {example: trim work- are you using primed or plain wood}. is the work mostly inside or out. there are really no guide lines for time. all rehabbs. are completely different.......km[ Edited by kenmax on Date 09/08/2004 ]
Heather - those are holding costs, you have to work them into the equation whenever you are looking at a rehab. Sometimes you might have 2 months of holding costs others you might have 9 months. With experience you will know the difference
If you plan to do a major rehab yourself it will take a lot of time regardless. Even if you are full time in REI, you aren't going to be able to concentrate on finding new deals or closing ones you have if all you are doing is working on your house.
I find that i'm busy enough putting the deals together that I don't have much time for rehab work.
You may find that hiring out the work is actually cheaper because you can get the properties done and sold quicker which saves on holding costs (interest, property tax, utilities, etc) as well as opportunity cost of having your money tied up.
GOOD LUCK