Flip or Flop, one of several HGTV series following the lives of home renovators, recently aired a couple netting a $54,000 profit on one project, and a partnership losing $3000. These shows, along with the folks that visit STL now and promoting a similar theme, can be enlightening or misleading, depending on how you view them. At a minimum, they are overly simplistic. Photo from HGTV

I receive calls periodically from clients who want to get into the rehab business. Many times they are led to believe it is easy money. While there are people that make a living at doing this, and a handful that are successful at doing it on the side, there are many more folks who soon realize it is hard work, and you can lose money as easily as make it. What is typically not shown or discussed is how skilled are you, how much is your time worth, how realistic is purchasing the home you want, or a detailed analysis of expenses.

Diamonds in the rough are definitely out there. In my experience, I have found that (1) proximity/ travel time; (2) basic knowledge of repairs & improvements, and (3) time to invest in doing and learning the trade are most important. I have also found that it can be easier to buy and rent for cash flow, then eventually sell for profit. Contact me to explore the investing side of real estate!