How Long Should It Take To Rehab A House?
Q: Gerald, I’m trying to raise private money to fund my first rehab project. One of the questions one of my private lender prospects asked me was how long it will take to do the renovation. How long should it take to rehab a house? Josh, Garfield, NJ
A: That’s a great question, Josh. The amount of time it will take the renovate your property will depend on a number of factors including how much work needs to be done to bring the property up to the standards of the neighborhood where it’s located. The time of year may play a role in how long it will take to renovate because renovations can be more problematic and time-consuming during winter in colder areas. The availability of contractors to do the renovation will also factor into how long a rehab project takes to complete.
The one thing, that you seem to be missing in your analysis is how long it will take to sell your property. When you rehab a property to sell, your holding costs include not only the time it takes to do the renovation but also how long it takes to sell the property which will depend on buyer demand in the real estate market or neighborhood where the property is located.
Thanks for your question, Josh, good luck.
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