Investment Strategy #3: Rehabs

Right now, at this very moment, someone somewhere in America is trashing their house. Why are they trashing their own house? Who knows...when life gets difficult some people's first instinct is to beat on their apartment with a blunt object. More often it's years of small repairs left undone that turn into very large repairs. The fact that someone is destroying their own house or letting it go to shambles usually indicates deeper problems, and these people generally aren't in a position to pay the mortgage on their demolished home for very long.

When a house needs to be rehabbed, as opposed to fixed and flipped, it usually means that there is damage done to the house beyond simple cosmetic fixes. Often it means you need to repair roofs, reinforce the structure, or go into the walls and fix major electrical or plumbing problems. However, as with most things in life, the more problems a house has the greater the opportunity for profit. If you can bring a very troubled house back from the brink you can make some very good money.

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