What are rehab houses? If you have been reading the real estate papers these days, then you have probably seen this term time and again. The problem is that the term itself is never really explained.
To put it quite simply, a house that can be placed under this category is a home that needs a lot of rehabilitation. But, it goes even further than this. Do you want to find out all about these types of homes? Well, then you’ll be happy to know that this article covers all the fine details about this term.
When speaking in real estate terms, rehab houses are not homes that house those with substance abuse issues. Instead, a rehab house is a house that is bought as a fixer-upper. However, instead of actually fixing this type of home, those that purchase rehab houses are looking to sell the home right away.
In fact, this is pure house flipping at its best. Before the term “house flipping” was thrown around loosely, it meant something completely different from what it means today. True house flippers never actually live inside of, or really own, a property. Instead, these people are mere investors that purchase a property, and then sell it right away for a tidy profit.
This is exactly the case with rehab houses. Investors will purchase this kind of home, and then they will sell the contract immediately. However, selling and purchasing a house of this type is not as easy as you might think. In order to invest in a home that will actually make a profit, it helps to know a few things about the house itself.
Find out how much repairs will cost before you buy a home, find out what the house might sell for, and figure out a way to present possible buyers with an image of the completed house. Of course, it never helps to have a few good investors in mind either.
Now that you know what rehab houses are (and are not) you can decide if this kind of house flipping is a good fit for you. If you are looking to purchase a home, fix it up, and live inside of it, then you are not looking for a rehab home.
However, if you don’t want to have anything to actually do with the fixing of the home, then this may be a good way for you to make some extra cash.