If you’ve ever come across a property that you knew you wanted to invest in but weren’t sure of what exit strategy to take, you are not alone. It is easy to fall in love with a property, but if you don’t have a solid plan in place, you should not go through with the deal.
Rehabbing involves major renovations – and typically costs quite a bit more – while a prehab can be as easy as a solid clean up job. Rehabs have the ability to bring back a higher return, but with big return comes big risk. Prehabbing, on the other hand, is meant to show prospective investors a property’s potential by only doing enough work to entice them.
Ask yourself these questions and follow our map to know whether you should make an offer or move on: