$130K Rehab Disaster: How to Avoid “Hidden” Home Renovation Costs

$130K Rehab Disaster: How to Avoid “Hidden” Home Renovation Costs

Added home renovation costs can ruin your plans to own the perfect rental property. When this happens, how do you come up with the extra funds? More importantly, how do you prevent this from happening altogether? We’ve got plenty of answers for you in today’s episode!

Welcome back to the “Real Estate Rookie” podcast! Jessica Bryant Walton owns several doors in Anchorage, Alaska. As you’re about to find out, investing where winters are long, water damage is common, and frozen pipes are everyday occurrences isn’t for the faint of heart. Jessica and her husband had just bought a duplex, only to find out that the previous owner had disguised a MAJOR leak and extensive damage with a second roof. What they anticipated would be a $40,000 rehab ended up costing over $130,000!

Fortunately, Jessica and her husband came up with creative ways to fund their renovations, increase rents, and lower their overhead by self-managing the property. But there are valuable lessons to take away from their experience. You’ll to learn why you should consider getting your real estate license, how to find the best contractors for your rehab projects, and the importance of always keeping a paper trail!

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Join the Real Estate Rookie Facebook Group:
Find an Investor-Friendly Agent in Your Area:
Find Investor-Friendly Lenders:
Leaks, Surprise Rehabs, and the Reality of Buying Your First Rental Property: https://www.biggerpockets.com/blog/rookie-277?utm_source=youtube&utm_medium=description&utm_campaign=none
The REAL Side of Real Estate: When Rehabs and Rentals Go Wrong: https://www.biggerpockets.com/blog/rookie-313?utm_source=youtube&utm_medium=description&utm_campaign=none
The Difficult Path to Wealth: Losing Money on Your First Real Estate Deal w/ JL Collins: https://www.biggerpockets.com/blog/money-285?utm_source=youtube&utm_medium=description&utm_campaign=none
Connect with Jessica:
BiggerPockets: https://www.biggerpockets.com/users/jessicab449?utm_source=youtube&utm_medium=description&utm_campaign=none
Instagram: @JessicaBryantWalton or https://www.instagram.com/jessicabryantwalton
Connect with Ashley:
BiggerPockets: https://www.biggerpockets.com/users/echopm?utm_source=youtube&utm_medium=description&utm_campaign=none
Instagram: @wealthfromrentals or https://www.instagram.com/wealthfromrentals/

Show notes at: https://link.chtbl.com/Rookie

00:00 Intro

01:21 Snow, Leaks, & TWO Roofs?!

07:59 The $130K+ “Nightmare” Rehab

14:24 Final Numbers & Investing in Alaska

16:44 Self-Managing Your Property

22:33 Dealing with Tenants & Finding Contractors

28:41 The “Rookie” Real Estate Agent

34:38 Connect with Jessica!

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