Long Distance Rehab


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  • Hi CFD members: Can anyone with knowledge or experience on doing a long distance Rehab on a SFR that I want to use as a rental when Rehab is completed.
    Can you give me any tips and precautions on Scope of Work, disbursement schedule, permits,etc. It will be a gut rehab, I was quoted 27-30k for the full Rehab and he wants 1/3 up front.
    Thanks, Gary

    Gary,
    My opion, I don’t do any kind of rentals or rehab more than 30 minutes away.

    Don is right…. do NOT do it unless you can be there for the entire rehab.

    Even doing rehabs close to home can turn in to a nightmare.

    But doing a rehab long distance can be even worse. There are too many things that can go wrong.
    Every time a problem comes up, it will require you to drop everything then go to the job site.

    Having long distance rentals can also be a nightmare unless you already have a strong and trusted and tested local team.

    When I lived in Texas, there were a lot of California investors buying rentals and doing rehabs there. Most of them ran in to serious financial problems and ended up selling at a deep discount. California investors did not know that foundations need to be watered in Texas or they will crack. Foundation problems can be very costly. California investors did not do their due diligence about property taxes and insurance costs so their cash flow was so low it made no sense to own the property. At the time, appreciation was low too- but you should never buy based on the potential for future appreciation.

    Just today, I got a lead from an investor on the west coast who wants to GIVE AWAY a mobile home on the east coast. He just wants out and is willing to take a loss to make the problem go away.

    Don and Jackie, Thanks for the input, I respect your advise and will follow it.

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