Rental4Income

  • Home
  • Investor Profile
    • Pre-Approval Form
  • Articles
    • Cash Flow
    • Finance
    • Investment Tips
    • Real Estate Investing
      • Tampa, FL
    • Real Estate Mentor
    • Rental Property
    • Tampa Real Estate News
    • Turnkey Investment Properties
    • Wholesale Real Estate
  • Videos
  • Glossary
  • Properties
  • Testimonials
  • About
    • Investing in Rental Property
  • Contact

June 4, 2012 By Admin

“Investment Property – Rehab Crew”

We generally estimate all our rehabs for about 90 days and are usually met with sobs and sighs because many people consider 90 days too long of a wait.

It can be a real eye-opener to see exactly what goes on during this time period – most people would be amazed as to how much activity is happening behind the scenes regarding their new property.

Rehabbing a rental property is not like training Jedi – even 90 days is not a very long time to wait.

Why does it pay to wait 90 days?

First of all, we typically finish the job and have it rented within 60 days, even though we promise 90. This extra time gives everyone enough “wiggle room” just in case something goes terribly wrong. Our last 30 deals have been completed within 60 days, but that’s not a promise we feel comfortable making, because a million different things can go wrong.

Secondly, we are highly motivated to finish the job as fast as possible because we don’t collect any management fees until the property is rented. All of our construction staff is on salary, so the longer it takes, the more expensive it becomes for all of us. Our crews are working on multiple properties at the same time, keeping costs down for the clients and keeping the guys busy each and every day – there’s no job recession for us.

The fact that the client’s interests are also our interests maintains us at a level of accountability that cannot be found many local contractors, if one can be found at all. And even then, we still charge about 30% less than any residential contractor would – and we get it done in less time. We do this because our primary business is property management, not fixing houses – it’s a supplementary service to enhance our management package.

Another way clients save money by using bundling discounted services such as: property management, rehab, rent, tenant screening, inspections, regulations, local codes, rent market analysis, rentability, HVAC, mechanical, electrical, plumbing and roofing just to name a few.

Outside contractors have zero motivation to save you any money. When was the last time an electrical contractor inspected a property and found nothing wrong? How many times has an inexperienced investor paid for unnecessary repairs just so the plumber can make a few bucks?

Our clients avoid these unnecessary expenses simply because we handle all of it in-house – and at a fraction of the cost. We are committed to the lowest possible price because it’s our primary objective to make money for our clients. The more money they spend on rehab, the lower their return. The more money they make, the better we look.

Big Brother

Not like the type of big brother depicted in George Orwell’s prophetic dystopian all-powerful state-above-the-individual classic, but more like a welcome, guiding hand – to help ‘steer clear of major disaster’ type of big brother. We manage all aspects of each rehab project – form regular inspections and walk-throughs, to strict daily supervision and leadership; from strong quality control and productivity checks and balances, to photo and/or video progress updates for the investor.

On top of all that, if there are any major renovations to take place on a project, we ensure that the correct walls are being torn down or installed to create the ideal floor plan for the maximum potential rent.

There are many factors in a floor plan that can actually decrease rental value. We take the necessary steps that corrects these imperfections before it ends up costing the investor on a monthly basis, rather than a small up front repair cost.

This video illustrates the importance of an ideal floorplan for a rental property.

Taking all of these ‘moving parts’ into consideration, can anyone really complain that 90 days is too long of a wait?

Common mistakes with over-improving

People who insist on doing the rehab themselves have a tendency of making the same mistakes in common. This is typically because of thinking like a home owner rather than a landlord. It’s not very bad, but a number of these small errors in judgement can add up to some big bucks at the end of a project.

Material Selection is a huge factor in keeping costs down. It is key to know the difference between building materials for an owner-occupied home and materials for a rental. Take marble windowsills for example. Yes, it’s very common in Florida for homes to have marble windowsills, but to replace the damaged windowsills on a rental property with a marble slab is just giving a future tenant the opportunity to damage a more expensive windowsill, whether he or she actually damages it is not relevant – it’s the opportunity to cause a higher dollar value of damage than necessary.

Same goes for kitchens. Why put expensive stone counter tops and back-splashes when, in all likelihood, the cost of these high-end materials will not be reflected in the monthly rent, so what’s the point? The same can be said for expensive window treatments, fancy tiles or flooring, as well as expensive cabinets and vanities. These things do not improve the rental income of the property, creates greater liability, and again, creates the perfect invitation for tenants to ruin more expensive property.

These decisions are better left up to the professionals.

Other Articles by Graystone Investment Group:

    Tweet
    PinIt

    Filed Under: Articles, Investment Tips, Real Estate Mentor

    headshot of Jorge VazquezLearn More About Real Estate Investing

    The Graystone Newsletter will keep you informed with important information relating to real estate investing. The newsletter includes information we share with our clients about the best places to invest in real estate, the latest trends, and the information you need to know to succeed investing in real estate.

    Real estate investors, wholesalers, flippers, real estate agents, and everyone connected to the real estate industry will benefit from the wealth of information we share very month.

    For more information about how we process your data, please click here to read our Privacy Policy.

    Disclaimer:
    RENTAL4INCOME.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP LLC. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.

    Want To Learn More About Real Estate Investing?

    Sign up for our newsletter, and you'll receive our newest articles!

    By clicking this button, you consent to receive emails, calls, and text messages about our products and services at the email address and phone number you provided. You agree that such calls may be made using an automatic telephone dialing system, they may be considered telemarketing or advertising under applicable law, and that you are not required to provide your consent to these calls to make a purchase from us. For more information about how we process your data, please click here to read our Privacy Policy.

    Recent Articles

    • How to Get Started in Real Estate Investing
    • What to Expect at Closing
    • How Much House Can I Afford?
    • How Do Interest Rates Affect the Housing Market?
    • What Does a Realtor Do for the Homebuyer?

    Get Started Right Now!

    Get started investing in real estate with Graystone Investment Group.

    For more information about how we process your data, please click here to read our Privacy Policy.

    phone Graystone Investment GroupCall (813) 449-4323
    Text Graystone Investment GroupSend Text to (813) 600-1658
    Graystone Investment Group
    3001 N Rocky Point Dr E, Suite 200
    Tampa, FL 33607 USA
    phone Graystone Investment GroupCall (813) 449-4323
    Subsidiary Brands:
    Graystone Acquisitions
    Graystone Real Estate
    Homes4Income.com
    Rental4Income.com
    RealEstate4Investing.com
    Accessibility
    Terms of Service
    Privacy Policy

    Recents Posts

    • How to Get Started in Real Estate Investing
    • What to Expect at Closing
    • How Much House Can I Afford?
    • How Do Interest Rates Affect the Housing Market?
    • What Does a Realtor Do for the Homebuyer?
    • What Does a Realtor Do for the Home Seller?

    Categories

    • Articles
    • Cash Flow
    • Finance
    • Investment Tips
    • Market Reports
    • Real Estate Investing
    • Real Estate Market Stats
    • Real Estate Mentor
    • Recent Properties
    • Rental Property
    • Special Events
    • Tampa Real Estate News
    • Tampa, FL
    • Testimonials
    • Turnkey Investment Properties
    • Uncategorized
    • Wholesale Real Estate
    Client Evaluation | Investor Profile | Rewards Program | Recent Properties | Pre-Approval Form
    Legal Notice | Terms of Service | Privacy Policy
    © 2023 GRAYSTONE INVESTMENT GROUP, ALL RIGHTS RESERVED. THE RENTAL4Income LOGO AND BRAND IS THE PROPERTY OF GRAYSTONE INVESTMENT GROUP LLC
    DISCLAIMER: RENTAL4INCOME.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP LLC. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.
    Internet Marketing by Image Building Media.