A rehab is a property which requires some amount of repair, renovation, or other type of structural or cosmetic improvement. Other terms for rehabs include fixer-uppers, handyman specials, and flips. Another phrase for purchasing, renovating, and selling a property is called flipping a house.

Essentially, what you do with a rehab is you buy a property that needs some type of repair, renovation, or upgrading, though the amount of these needed can vary widely from property to property or area to area. Since the property needs this work done, you can negotiate and buy it a lower price. You then fix it up by doing the repairs and renovations needed to make the home attractive to a buyer. You can even do the work yourself but this is not the best scenario to go for. It is not very efficient, it is not very profitable, and it is not what wealthy and successful people do. We want you to become free, and doing handyman work yourself does not allow you the time to be free. Also, being stuck doing the work in a property will distract you from focusing on what really makes you the money: finding the deals! We want you to create a system and have a team that does all that work for you so you can concentrate in finding the deals all day long. You should always use a reputable contractor to manage and take care of the repairs. Once the property is fully repaired and upgraded, you can either sell the property for a profit or rent it out for positive monthly cash flow or passive income.

But you really have to do your homework with rehabs. You don’t want to buy a property that is going to take so much money to fix it up that you make a minimum amount of profit, if any, on the sale. A rehab always has to be worth the amount of physical and financial effort necessary to put the time, energy, and resources into to making it a worthwhile venture.

Now, obviously the more effort you put into rehabbing a property, the more money you can command on reselling it. But you really need to balance the amount of effort compared to the amount of profit, or potential sale price, you can command for the property. Research is necessary to determine if the purchase price of the home, plus the costs in repairs and renovations, minus your potential sale price, is going to net you a profit.

If you want to do a rehab you have to become very efficient at estimating the cost of repairs and renovations. This is a crucial step that you must learn to do properly. Any mistakes here can cost you money and time when you want to sell.

Rehabs can be a very good way to make money in real estate. You buy the property cheap, you fix it up, and you sell it at a profit. This method is a step up from wholesaling and takes longer to do, but depending on the costs involved, you could net a larger profit. Rehabs would require a different type of marketing in comparison to wholesales. You need to find a different list of sellers and buyers and market to them a little differently. However, rehabs can be a very good way to service those particular clients.

Our students in Cash Flow Properties Academy become master deal-finders and experts through wholesales, and understand the market and investments at a deeper level, they are able to accumulate a decent amount of cash and knowledge and take action to start doing their first investments. It is a wonderful feeling knowing that they are paving and creating the best foundation to their financial freedom. To learn more about our programs and get a free lesson go to