6 Things to Consider When Executing an Investment Property Rehab in Baton Rouge 70815

If you’re thinking about doing property rehabs, this blog post will reveal 6 things to consider when executing an investment property rehab in Baton Rouge – these could determine whether you succeed or struggle!

Rehabbing a property is a lot of fun. But there are pitfalls you’ll face as you acquire, rehab, and sell the property. If you’re not careful, these pitfalls could hurt your chances of a successful and profitable rehab! But we are here to help with 6 things to consider when executing an investment property rehab in Baton Rouge…

6 things to consider when executing an investment property rehab in Baton Rouge

#1. What Do Your Buyers Want?

People are emotional. They go off feeling more than logic. I do it myself a lot of the time. I will argue with my business partner over silly things like the color of the flooring or the materials for the sink faucets. It’s easy to get caught up in the small details, but remember, you are not your buyer. Whether you are choosing colors and selecting countertops, the most important thing to remember is that you’re ultimately rehabbing to sell, so make sure you select colors and decorations that buyers want to pay for. Many times, neutral is best, because it appeals to the broadest market, which will bring you more buyers.

#2. Speed To Sale

Where a lot of rehabbers get off track is taking their time, perhaps only working a 6 hour day and then going home, or deciding to take the weekend to think about which countertop is the best one for the house. Holding costs will eat you up. The sooner you sell, the sooner you make money. Period. Plan well. Work hard. Execute.

#3. Permits

Rehabbers need to work quickly to make money but municipal governments, who grant permits, do not tend to move very quickly. Should you keep working anyway? Should you wait until a permit comes through? We always advise that you remain compliant with local laws but this can be a challenge at times since cities can take a while to issue permits. Plan ahead.

#4. Costs

Your budget, once realistically set, should be set in stone and every decision should be made with the budget in mind. One area that rehabbers get off track is in making many small decisions outside of the budget. Each decision on its own might not seem like a lot but those costs add up fast! We didn’t think about small things like towel bars, pulls for cabinets, and light fixture covers on our first rehab. It still was profitable because we bought right and built in an extra $5k for bad budgeting, but it could have been a big issue.

#5. Team

Some rehabbers choose to rehab properties themselves and others choose to use a team. A team adds costs to your budget but can get the rehab done quicker. But it’s more complicated than that because a team can also add scheduling challenges. If you want to have a successful rehab with a team, you need to master the skill of leadership, or more specifically, management. That also can be a problem, because you may have to manage people doing something that you know nothing about. We recommend being more hands on for your first rehab or two, then manage a team once you understand how to do everything.

#6. Marketing

The sooner you sell your rehabbed property, the better. Therefore, plan to do a lot of marketing regularly to get the most eyeballs possible on your property! Another strategy for a quick sale is sell for less than the competition. If you buy right, you will be able to, driving down your holding costs and getting that money in your bank account ASAP.

BONUS: Taxes

Think about the tax treatment of your project. If it is a straight flip that you don’t live in, you will probably have to pay income tax on it. If you live in it, you can keep it for two years, then sell and avoid any tax on the gains up to $250,000 for a single person, $500,000 for a couple. If you renovate it and keep it as a rental, you can do a cash out refinance and keep the property, but suck out some of the equity tax free. Taxes are complicated for real estate, but these basics are something to think about and can really effect your ROI.


Planning to rehab a property? These are 6 things to consider when executing an investment property rehab in Baton Rouge to ensure you stay on track and increase the likelihood of success.

We have several below-market properties that are perfect for rehabs. Want to see our ever-changing inventory? Click here now and fill out form or call our office at 225-230-2521

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