When doing rehabs on fixer upper properties, be careful to avoid overspending. Spending too much time and money on the rehab takes its toll on your budget as well as over factors. These are some of the dangers:
No Budget Left For Critical Issues
When you’re too loose with your money on cosmetic “niceties” you run the risk of being caught short if you run into surprise critical issues later on in the project. For instance, you order Italian mosaic backsplash tiles and other high end features for the kitchen, then discover later on that you’ve accidentally purchased a home built with the dreaded Chinese drywall, and the entire house is going to have to be brought down to the studs. Now you’re faced with a huge outlay that you weren’t expecting, and your budget’s already been stretched as it is.
More Time Needed For Custom Deliveries
If you’ve ordered custom products or specialized materials that need to be delivered from third parties or overseas, this could hold up your rehab timeline. Ultimately, while you’re waiting for materials it will take you longer to finish the rehab and, subsequently, longer to get the property cash flowing for you.