So, what is a rehab real estate investors “homerun?
Homeruns occur at the outer edge of what is typical. My homerun deals have occurred one of several ways. – The spread is stellar. Let’s say the spread is $45,000 and the rehab is a manageable $5-10,000. – The spread is good, but the rehab is very light. Wham-bam, I’m looking for tenants within days of closing. – The cost is exceptionally low for a given area. Sometimes the spread on paper will not be anything to get excited about, but the property has a huge lot, extra bedrooms, or is located an area that is in serious demand. – There is NO rehab, and the spread is sufficient that I can buy it with none of my own money. True story – I’ve only had one NO rehab deal. Wow. This house had been recently rehabbed, clean and didn’t need a thing! This was a homerun just due to the ease at which I added this property to my inventory! The spread wasn’t great, in fact, I had a local hard money lender make up a story about being out of money because he thought the spread was too narrow and didn’t
