If you are new to “flipping” or investing in rental property, one of the biggest mistakes you can make is trying to make the repairs and upgrades by yourself. Unless you are an expert in the field of home repair, you could seriously end up regretting your decision. There are many reasons why this type of decisioncan be a huge mistake. Here are three of the most common.
1. Thinking You Will Save Money
Thisis a two-pronged animal in that it’s easy to see why you might think do all the work yourself is going to save money. After all, you don’t have to pay for someone else’s labor, and you get to choose the quality of the materials that go into the project. However, you do need to stop and think for a moment.
What kind of value do you put on your own time? Will you be taking time from your job to complete the work? Depending on the nature of your work, you could easilyend up losing more per hour than you would be saving by hiring a professional to do the work.
2. Time Costs Money
If you are not familiar with the type of work that needs to be done, it could take you three or four times longer to do than it would a professional. “So,” you say to yourself, “It’s my time to invest and so what if it takes a little longer.”
Let’s break this statement into to parts. Let’s start with “It’s my time,” in essence this is very true. But by taking so long to make the repairs, you are taking time away from your job, andthat could be spent looking for more investment properties to pad out your portfolio.
“So, what if it takes a little bit longer,” the faster you get the house ready to sell, the sooner you will have the money needed to invest in your next property. The longer you have your money tied up in the property, thelonger it will take to increase your holdings. The same applies to any property you are considering for use as a rental. The faster you can get your property out on the rental market, the faster you will start seeing a return on your investment.
3. I Do Good Work
“I am pretty sure that I can do the work as well as any professional (at least I think I can).” Professionals spend years mastering their individualskills; theyknow all the tricks of the trade. Not only can they get the job done faster, but they guarantee the quality of the work. Unless you are skilled at carpentry, plumbing, electrical, painting, laying carpet and any one of many other trade skills, you may want to leave these repairs and upgrades to the pros.
By spending all of your time investing all of your time fixing up the property, you are taking time away from your business. Timethat could have been better spent searching for more propertiesand investing in expanding your business. In most cases, the best option is going to be outsourcing the work and investing your time and efforts into growing your business.