Here is some rehabbing advice for the newbies out there.  These are 2 lessons I learned the hard way on my first rehabs, and hopefully by sharing them I will alleviate the heartache and headache for some of you.

First, I would always have your application for any necessary permits prepared before closing.  I now do this because on my first rehab I wasn't prepared and it took over 4 weeks to get my permits approved.  Partially just because the township was really slow and partially because they wanted information in the application that I have never been asked for before for on any of my remodeling jobs.  Just to clarify, I owned a remodeling business for 5 years before rehabbing my own properties. Now what I do is this:  I do my inspections before closing, figure out what I need to do for rehab, go to the township and get the application for any needed permits, fill out the app, go to the township and have them look it over to make sure I have everything they need to approve the app.  This way if they need a master plumber or electrician's stamp or anything else that could hold up the process, I'll have it done.  What I do now is go to closing and close the deal, and then go directly over to the township building and submit my app the same day.

My second piece of advice is to not go overboard rehabbing your property.  I learned this the hard way also.  I rehab entry level houses in nice areas, or less.  I never do high end, not that you can't do that, but I stick with what I'm good at.  In my first rehab I put on an addition, put in all new hardwood floors, granite counters, added 2 bathrooms, new siding etc.  You name it, I did it.  Well, I didn't make much money.  I was really happy to break even, but the headache and stress was unbelievable.  I should have gone in and cleaned up the walls, painted, put in some new fixtures, new carpet... I could have been in and out in less than a month and only spent $15,000, but I took 6 months and $90,000.  Dumb Dumb Dumb (because I new better)

I got caught up in the excitement and wanted mine to be the best house ever rehabbed.  The problem is, the size of the property and the area puts a limit to your after repaired value, which I new and ignored for some reason.  Live and learn.  Here is what I do now:  I look at my resale competition and gage my rehab on those properties.  If you are competitive with your pricing and your house is the nicest of your competition, it will sell the fastest!  So, builders grade flooring, cabinets, counters, fixtures,trim and paint.  I will put in new toilets, sinks and tubs, but again, basic or generic.  You don't have to put in a jetted tub or some fancy European sink.  The trick here is FRESH and CLEAN!  It works for new home builders and it will work for you also.  DO NOT go overboard.  My property will never have the jetted tub, but my property will be new, clean and fresh from head to toe, and this always makes me the best choice for a home buyer.

I guess that's it for now.  I'll chime in again soon.  Take care!