How much should I do before closing?

Rehabbing, Fix and Flip, Rental Properties
1

Hello everyone,

   I hope all is well. Here's my latest. I have a SFH closing in 2 weeks. Its in need of some work before I can get it rented. I have gained early access and have started clean up. In order to have it rented ASAP I'll have to put quite a bit into it before closing. What precautions should I take rehabbing before rightful ownership takes place?

Much appreciated,

RT

2

Deals fall apart for all kinds of reasons. I would not put a bunch of money into the property until you have the deed.

Mike

3

Thats what I assumed. Thanks for the backup.

4

I agree…You might not be too concerned about risking your labor for free if the deal falls through, but don’t put much money into it at all…You might want to go ahead and do painting and plastering, and maybe some light carpentry that won’t cost you too much, possibly even some ceramic tile work if you’re going to do that, but don’t go overboard…And look at the “outs” that the seller has in the contract…

5

I won’t touch them until the sale is through escrow and the deed is recorderd. There is too much that can go wrong with a purchase right up to the last second.

Also, I don’t want to be working on the property without insurance. I’m not covered until I own it.

On the flip side, when I am selling, the buyer had better not be inside working on the house before he owns it.

6

Maybe just some minor cleanup,but thats about it.Make sure you have your crew ready to go in on closing day