SMARTERLANDLORDING

ADVICE FROM EXPERIENCE

Rehabbibng Properties

Sometimes Technology Causes New Problems

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I am constantly amazed by technology and the benefits it brings.  As a child of the 1980s, having more than three TV channels along with a source of communication and all knowledge right in your pocket is astounding.  But sometimes I think too much technology can be too much of a good thing. As a landlord, it seems that instead of being helpful, technology sometimes causes new problems.

When you own multiple rental properties, the last thing you want to create for yourself is more potential problems, another maintenance issue or something else you have to keep on top of. We landlords have enough of that already with all of the roofs, yards, accounting and personalities we must deal with.  Technology has certainly made many things better.  Cell phones make communication, scheduling and completing tasks much more efficient for example.  But technology also seems to create its own problems.

Take thermostats.  Yes, I’m talking about the simple device that controls the heat and air conditioning.  They are not so simple anymore. Gone are the days when a thermostat had two switches and a lever to control the temperature.  Today they have batteries, long instruction sheets and need to be programmed.  Sure, there are benefits to these things but batteries die and need to be replaced, instructions get lost and programming gets deprogrammed.  All of which causes a hassle for me and my tenants that I would not have if I had the simple, old style, analog thermostat.

Appliances are another example.  Appliances have always been a maintenance issue. They breakdown, get abused and worn out and must be replaced.  This can be such a problem that some landlords shy away from even providing them.  Technology has made this problem worse.  As a landlord I want simple.  I want indestructible.  I want something that even a small child could figure out and use.  Technology is moving us away from that.  Stoves, washing machines and dishwashers used to have simple switches or knobs.  On was on and off was off.  Not so anymore.  Electronic control boards have changed all of that.  There are now so many circuits, switches and buttons that can break or malfunction to render the appliance useless and in need of replacement.  No longer can one just replace a knob or a switch in a few minutes, now the entire appliance has to be replaced.

Sometimes I feel like I am just yelling at a cloud and turning into an old fogey with these sorts of rants.  Perhaps I am and I guess it will happen to the best of us.  I truly get many of the benefits that technology has and is bringing us.  I like the LED lights that save on electricity and hardly ever need to be replaced for example.  But I do not need or want technology to create new or increase problems for me.  It seems that sometimes the old technology was simply better.

What do you think landlords?  Am I wrong here?  Am I just not keeping up with the times? What technology do you think is great? What just causes you more problems? Let me know with a comment below.

Kevin Perk is the founder and publisher of Smarterlandlording.com. He is the author of Advice From Experience To New Real Estate Investors.  Subscribe to Smarterlandlording here. Contact Kevin here.

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Estimating Rehab Costs – A Checklist To Put It All Together

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My last post was about the importance of accurately calculating rehab costs.  In it, I demonstrated how important these rehab estimates can be to our bottom line.  They can change a potential deal from good to not so good, or prevent us from getting a potential deal.  In this post I want to share a checklist that you can download and use to help you put it all together and accurately estimate rehab costs.

Inspecting Potential Properties

As real estate investors, our business means examining properties.  However, the opportunity to examine a property can be limited or hindered.  For one, there may not be much time to look at a property.  Secondly, there are often a variety of distractions.  These distractions are often other people.  It could be the seller or a Realtor or other investors who are at the property the same time you are.   Because of these time distractions and other people, it can be very easy to overlook or miss something when you are inspecting the property.  The best way to stay on track is to use a checklist.

The Rehab Estimation Checklist

Every time I visit a potential property, I take and use my Rehab Estimation Checklist.  I developed this Checklist over the years through trial and error after visiting numerous properties.  It is simple and straightforward and allows you to make quick notations.

The checklist is a directory of the main components of any property rehab.  It starts on the outside of a property and works its way inside.  When visiting a property, all one has to do is follow the list and check yes or no next to the component.  Marking yes on the checklist shows that the component will need to be rehabbed.  There is also a space for any comments that you might wish to add.

It should take you no more than 15 minutes to a half-hour to completely go through a single property with this checklist.  Once completed, you can return to your office and add costs next to the components you think will need to be rehabbed.  So for example, if you note that the property needs a new roof, you can then use the formula noted here to determine the cost.  If you not that the property will need interior painting, you can use the formula described here to estimate that cost.

Keeping On Track

This checklist serves several purposes.  First, it organizes my thoughts and calculations.  There can be a lot of moving parts in a rehab job.  Being organized right from the start will help tremendously.

Second and more importantly, the checklist ensures that I do not overlook anything.  As I said above, there can be a lot of distractions and it can be easy to miss something.  Having a list ensures that I do not forget to check the water heater, the electrical panel or under the sink.

Third, if there is someone distracting me, the checklist helps stop it.  Sometimes properties are vacant and you will be alone when you see them.  But often there is someone else around and they will, wither purposefully or not, distract you.  Trust me, people just do not seem to know how to leave you alone and let you look over the property.  They will want to show you around.  Having a checklist enables you to hold it up and say something like “I just need to look at these items on my list if you do not mind.”  That will usually get them out of your way.

Download The Checklist

Checklists are an important part of any business.  They help keep you on track and focused.  With potentially expensive rehabs, a checklist is vital to your success.  Download my Rehab Estimation Checklist here.

Estimating A Rehab – Four More Pieces Of The Puzzle

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My previous post examined how to quickly estimate three major rehab components.  To further help you when estimating a rehab, in this post I will discuss how to quickly estimate four more basic rehab components – flooring, paint, bathroom tile and kitchens.

The components described in this post, while perhaps not as big as those in the previous one, are no less important.  Being able to quickly and accurately evaluate all parts of a potential rehab will put you ahead in the game.  The discussion below examines estimates for a basic interior rehab of a rental property.

Basic Flooring

Basic flooring generally refers to installing new flooring materials.  It includes carpet, laminate and ceramic tile, but it can also refer to refinishing hardwood.  A basic rule is to budget about $2 to $3 per square foot of flooring needed.  This price includes both material and labor.  Of course the materials you choose for your flooring will matter.  But many types of flooring are pretty inexpensive.  For example, I just bought some ceramic floor tile at one of those big box home stores for less than 40 cents a square foot.  So be sure to shop around

Paint

A gallon of paint will cover approximately 300 to 400 square feet.  You can use this standard to estimate how much paint you will need for a particular job.  On a 10’ x 10’ room with standard 8’ ceilings (320 square feet total, less doors and windows) a gallon may do it.  The actual paint is fairly inexpensive.  $20 a gallon or so will get you a decent quality product.  But it is not the materials that are the expense here, it is the labor.  A decent paint crew will cost you about about $2 per square foot.

Bathroom Tile

New bathroom tile can really make your rental property pop to perspective tenants.  Nothing grabs a potential tenant’s eye more that a fresh, clean bathroom.    Bathrooms however can be a bit more intricate and thus take more time to do.  Both the walls and floors often utilize materials that are more unique.  Wall tile for example use bullnose (rounded edge) and other specialty tile types.  Floor tiles may be small and hexagonal in shape.  Expect to pay about $3 to $4 per square foot of new tile installation in a bath, depending on the materials you choose.  I like standard, old style black and white tiles but square foot ceramic tiles can look quite good as well.

Kitchens

Kitchens can be as expensive as you want them to be.  You can easily spend five figures on a higher end kitchen.  In a rental property however, there is generally no need for that type of expense.  Cabinets and countertops make up the largest part of your budget here, but they do not have to be super expensive.   Unfinished wood cabinets will cost about $30 per linear foot.  Finished cabinets can be more than double at around $70 per square foot.  Of course if you go unfinished you have to think about the cost to finish them and the recurring costs of keeping them looking good as tenants move in and move out.

The choice of counter tops these days are wide ranging.  Laminate can run about $20 a linear foot.  Granite, which is very trendy these days is generally a lot higher but can be sometimes found at a decent price at some building discount stores.  Be aware with stone countertops of the added costs of cutting and installation.  Cutting granite is no easy task and may not always come very cheap.

Using the basic guidelines outlined above and in my previous post will help you get started with the estimation of any basic rehab project.  In future posts I will discuss other rehab costs that you need to account for and begin to put all of these various rehab components together.

Quickly Estimate Three Major Rehab Components

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Rehabbing is a big part of a real estate investor’s business. After all, run down properties often offer profit potential. Accurately and quickly estimating rehab costs is an essential tool. In this post I want to go over how to quickly estimate three major rehab components, roofing, HVAC and electrical panel upgrades.

Rehabs Contain Many Components

Every major rehab will contain several major components and many smaller ones.  Some of these components can be estimated fairly quickly because there are established, industry wide standards.   Moving quickly with a rehab estimate towards making an offer is important because there is often another investor right behind you.

For the purposes of this post, I focus on the basic standards and materials used for single family and smaller multi-family properties on three major components.  In future posts, I will add to this component list and bring the components together.

Roofing

Every property needs a solid roof, but weather and time take their toll.  A new roof is often one of the more costly components of a rehab budget.  Estimating the cost of a new roof is not too difficult however.

The standard measurement to remember that is used in the roofing trade is the square.  A square is 100 square feet.  The cost to replace a square of roofing with average materials and labor is fairly standard.  You can of course get up on a roof and measure the actual square footage of the roof and then divide by 100 to find out the number of squares. But there is an easier way.

A quick rule of thumb for roofing is to budget about $2 for every square foot of interior space on the house.  Square footage can usually be looked up quickly on the internet.  Thus, if a house is 1,500 square feet, you can budget about $3,000 to replace the roof.  Of course there is usually some rotten wood and decking that needs to be replaced.  So adding on an extra $500 or so is not a bad idea.

As I said, this is only a quick rule of thumb.  Other factors such as pitch (or angle), height, the number of old shingle layers that need to be removed and the amounts of rotten wood can add to the cost.  But for a typical single-family family house the formula works fairly well.

HVAC

Most buyers and tenants today want modern conveniences.  One of those conveniences is central air conditioning.  Budgeting for the addition of a central heating and cooling unit is also fairly straightforward as there is a standard measurement that is used.  This measurement is the ton.

A ton of HVAC will usually cool about 600 square feet of space.  Each ton costs approximately $1,500 to install.  Again, using our 1,500 square foot house as an example, a 3 ton HVAC unit should adequately heat and cool the house.  Cost for complete installation, including all ductwork, vents, etc., is around $4,500.

Again, this is a general rule of thumb and connections to electricity and gas or ease of accessibility can affect the cost.

Electric Panel Upgrades

Many older homes were built before modern circuit breaker panels were used.  Fuse boxes were the norm and can still be found on many older homes.  Today it is often best to upgrade these fuse boxes to modern circuit breaker panels.  Modern appliances such as clothes dryers and central cooling demand it.

Upgrading a fuse panel to a circuit breaker panel is not very difficult or time consuming for the trained electrician, but it is a little costly.  Expect to pay around $1,500 for a new panel.  Keep in mind that the $1,500 applies to each panel.   So if you are looking at a duplex property where each unit has its own separate electric meter and panel, budget $3,000 to replace both.

The Big Three

These three items are some of the most common big ticket rehab items that can be fairly easily estimated.  Your local market may vary a bit and these prices are not from the folks you see advertised on the billboards all around town.  If you see something out of the ordinary or are not sure, get a trusted contractor to take a look.

Increasing Profit Potential Through Standardization

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Nearly every property I have purchased required an extensive rehab.  Rehabs are complicated and no two are ever the same, making them perhaps the most difficult and costly aspect of this business.  Adding value through a rehab, despite the difficulty and cost, makes these properties profitable to us.  But, our goal as investors and entrepreneurs is not to just do a rehab for profit; it is to run an efficient business that increases the potential for making a profit.  Increasing profit potential through standardization, especially rehabs, is one way to do that.

Standardization helps to reduce the difficulties and the costs of doing a rehab.  All businesses should strive to standardize their processes, to streamline and make things as repetitive as possible.  Standardized and streamlined processes save valuable time, and time as they say is money.  Use time wisely and the reward will be more money in your pocket.

The Perfect Example

McDonald’s is a perfect example to use.  McDonald’s was my first “real” job and before they let me do anything, I had to go through training.  I watched videos, read manuals and followed checklists on how a hamburger patty was to be properly grilled.  I had to learn the exact amounts of lettuce, pickle, etc. that went on a Big Mac.  Everything was spelled out in detail so the process of making a Big Mac could be repeated over and over, not just at the restaurant where I worked, but also in Chicago, Memphis, Paris, Tokyo, wherever.  It was this standardization that in part made McDonald’s so successful.

Rehabs are not Big Macs however so they are much more difficult to standardize.  This difficulty stems from the facts that every property is different and needs differing amounts and types of repairs.  Throw in the turn of the last century construction that is common in my market and rehabs become even more complicated.  Despite my best efforts, every time I do a rehab job there is a new issue that gets overlooked because of these differing factors.

Keys To Standardization

One key towards standardization is the use of materials.  Just as McDonald’s uses the same pickles over and over, we real estate investors can use the same paint colors, ceramic tile, plumbing hardware or ceiling fans over and over.  Doing so will lessen difficulties at the property in the future and left over materials can be used on the next project to reduce waste.

Another key to standardization and thus a more streamlined business is the use of checklists.  A checklist assists in ensuring that the same standardized materials and processes are used and repeated.  Checklists help guarantee that easily overlooked items are not.  They are also valuable tools to keep you on track and within budget.

Without standardization and checklists too much is left up to chance.  The chance of you forgetting something is high.  The chance that you will spend more on materials than is necessary is also high.   Your contractors will miss things as well.  There are just too many moving parts in a major rehab.

It Always Evolves

Standardization and checklists in the real estate business are constantly evolving.  The differences in properties will always ensure that, as will the desired outcome of acquiring the property.  The rehabs for your buy and hold properties will likely be very different from the rehabs for properties you wish to resell on the retail market.    This however does not mean that standardization cannot be done; just that it is an ever changing process.  Checklists for example are never set in stone, but are constantly revised as new problems are raised or as new processes and products make things easier.

I’ll talk more about what I do to standardize things in my business and some of the things I have experienced in future posts.  For now, if you have not before, take this opportunity at the beginning of the New Year to begin to think about what can be standardized in your real estate business.  Start making lists and keeping track of what it is you do.  Knowing where you are now is the first step towards moving things forward.

What have you been able to standardize in your real estate business?  Was it materials, property inspection procedures or even just how the phone is answered?  How has this helped you’re your business more profitable and manageable?  Please add to the discussion with your comments.

Protect Yourself With An Independent Contractor Agreement

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Being a real estate investor means working with contractors.  As I said in my previous post, many of the properties we purchase need large amounts of work.  That work is often where the value for us investors is found.  Working with contractors however exposes us to risk.  You need to protect yourself with an independent contractor agreement from that risk.

Where does that risk come from?  The risk comes from the fact that repairing and rehabbing properties is somewhat dangerous.  People can get hurt, seriously hurt.  Just think of what is often involved.  There are roofs dozens of feet above the ground.  Ladders are used to get the workers up to them.  Electric cords and wiring are run or strung everywhere.  Natural gas lines are opened and exposed.  Floors that keep us upright are ripped apart.  Debris is often scattered about.  Nail guns shoot nails right next to toes.  Sharp objects are both used and found all over any job site.  All of this and more obviously increases the risk of injury and harm.

You, as the investor and property owner, have to take steps to protect yourself from this risk.  Those steps begin with hiring qualified people to do the job, but of much more importance in my opinion is the contract you sign with your contractors before any job begins.

You are using a contract on every repair job with every contractor right?  I hope so.

If not, you are exposing yourself to unnecessary risk.

It’s All About The Contract

Contracts are important documents because they spell out who is responsible for what, including the people that are coming to and working on your property.  These contracts spell out that these folks are not your employees.  You are not telling them what time to show up.  You are not telling them when to leave, nor are you supervising every move they make.   Instead they are independent contractors who (in many cases) are responsible for their own missteps and for their own insurance.  You as the property owner are just telling them to “make it so” and then letting them get it done.

By using an independent contractor agreement, you place much of the burden of responsibility on your contractor instead of you.  This is how you reduce your exposure to risk.

If you do not use such a contract and an accident, or worse a death occurs, then you might be held responsible.  Further, when these accidents and deaths do occur, people start looking for the deep pockets and who do you think they are going to assume has the deepest pockets?  They are going to look at and assume that you, the property owner are to blame and have deep pockets to pay.

It can all happen very quickly.  All someone has to do is slip on a roof and be paralyzed or killed in the fall.   Even experienced contractors can make mistakes or take a wrong step and if you are not protected, you and everything you own may be liable and open to damages.  People often want to blame someone after an accident happens and it is easy to look at and blame the property owner.

The Phrase To Use

It is such a simple thing to get a contract signed with your contractor before work starts.  It does not have to be long winded and full of legalese to be effective either.  Short and sweet often can and does work.  Here is a clause that I use in my independent contractor agreement.  Feel free to use it, or some form of it, in yours.

Contractor and Client intend this Agreement to be one of independent contractor and client.  Contractor therefore retains the sole right to control or direct the manner in which the services prescribed herein are to be performed.  Client retains the right to inspect, to stop work, to prescribe alterations, and generally to supervise the work to insure its quality and conformity with that specified in this Agreement.  Contractor warrants that upon signing of this agreement that Contractor has obtained all stated and necessary insurance, including worker’s compensation coverage, and that it will be kept in full force and effect until the completion of the work contracted for herein.  As such, contractor herewith agrees to sole and complete liability for any injury to self or contractor’s workers.

Whatever you do, just make sure you use a contract and make sure you use one that will protect you.  Beware that the contract your contractor wants you to sign usually protects their interests, not yours.  You need your own independent contractor agreement (reviewed by your own attorney too) that protects all you have worked and are working for.

 

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Is It Possible To Get A Quality Rehab Quick And Cheap?

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Working with contractors is often a significant part of a real estate investors business.  Many of the properties we invest in need work, lots of work.  Getting that work done on time and on budget can greatly increase our bottom line.  But is it possible to find a contractor who can deliver a quality rehab quick and cheap?

Maybe.  But it is really difficult to do so.

Working with contractors can be one of the most frustrating parts of this business.  Many will over promise and under deliver and you never really know how well they will work out until you have had at least one go around with them.  And in a tight real estate market like we have today, your choice of who you can get to do some work may be quite limited.

Many contractors will also tell you that they can deliver a quality job quickly and cheaply, but doing so requires skills that are often lacking. It is much more common to find contractors with two of those qualities, but not all three.  It is the rare person who can actually deliver quality quick and cheap.

This situation can put us investors in sort of bind.  Which two out of the three do we want?  Do we want quick and cheap but low quality or higher quality with an increased price?  And what about the time frame for completion?  How important is that?

Over the years I have come to the conclusion that quality and price are the more important of the two.  I would rather extend a job a few weeks and get it done right than get it done so quickly that I just end up doing it all over (and spending money) again in the near future.  I have found that while I may save a bit of money on the holding costs on the front end by getting a job done more quickly, I often lose it on the back end because quality was sacrificed for speed.

Plus, a good contractor is going to need time to make sure that a job is done right.  There are some things you just do not want rushed.  If you try to rush tings, shortcuts will be taken.  I am not a fan of most shortcuts as they always seem to come back later and bite me in the butt.

Contractors who can and will do quality work in a reasonable amount of time are usually not the cheapest you can find.  That lower price quote often means that something is being skimped on somewhere.  The old saying “You get what you pay for” may sound canned, but it is just as true in the contracting world as it is anywhere else.

Go For Quality

So while I do not think that quality quick and cheap is very attainable, quality at a fair price and done in a reasonable time frame is. How do you find that?  Here are a couple of ideas:

  • Shop Around – Get several estimates, even if you plan on using the same contractors again and again. Familiarity can often breed complacency along with a mistaken comfort to not double check your numbers.  Getting multiple quotes all the time keeps both you and your contractor honest.
  • Use Incentives – People respond to incentives. Give a bonus if a job is completed ahead of schedule.  Use a penalty if things run too long.
  • Be Available – Make yourself available to solve problems. I can tell you that every major rehab job will have unforeseen issues.  Be around to help solve those issues.
  • Let Them Work – Do not nitpick and do not hover. Sure, point something out that does not meet your standards or looks out of place.  But otherwise let them work.

We can all strive for a quality product done quickly and cheaply but when it comes to contractors getting all three can be a tall order.  Over the years I have found that quality is the most important of the three.  Even if it is often a it more expensive and takes time.  Cheaping things out will eventually hurt you, your good name and your bottom line.  Remember that part of being in business is making people want to do it all again.  A poor product will not get you there.

The SmarterLandlording Podcast – Buying, Rehabbing and Managing Class D Apartments

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“The real estate is easy, the people are hard.”

Check out the SmarterLandlording Channel on iTunes

Stuff We Mentioned

Memphis Investors Group – The Memphis Investors Group (MIG) is the local REIA club here in Memphis.  If you are here in Memphis, look us up.  If not, check for a club in your area.

Multi-Family Investors Sub-Group – This MIG sub-group meets at noon every third Wednesday at Newby’s on the Highland Strip right here in Memphis, TN.   It’s free to go but lunch is Dutch treat.

Section 8 – Section 8 is a low income rental subsidy program that many investors in class D properties use.  Check out the Smarterlandlording Podcast with the Section 8 Landlord to learn more.

Like the Intro Music?  Check out my good friends in the band Kitchens and Bathrooms (Kind of fits right!).  They write and play some awesome, original music from right here in Memphis, TN.

The Hardest Part of Rehabbing

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Rehabbing properties is something that most real estate investors are going to deal with at some point.  Be it apartments or retail homes, rehabbing is a part of real estate.  Starting a major rehab and doing them is actually pretty easy and it can be fun to watch a property get demolished and then brought back.  The hardest part of rehabbing however is getting it completed.

In this post, I want to share with you why I think the final 10% of a rehab job is the hardest part and then some tips to hopefully it less difficult.

The Rehab Process

All major rehabs will generally follow the same process.  You set a budget.  You make out a list of items that need to be done.  You have contractors give estimates.  You hire one and sign a contract.  Work starts.  Work progresses.  Bumps are smoothed over.  The rehab is completed.

I have done many rehabs over the past 15 years and have followed the above process time and time again.  And without a doubt, the hardest part in that process is getting the thing competed.  It is not cost over runs, those are expected.  Writing checks is not too hard as they were budgeted for (as are most of the over runs).  Getting started is easy.  Nor is it not hiring contractors.  It is the final 10% of any rehab project that, at least in my experience, is the hardest part to complete.

It is the final painting touches.  It is getting those last pieces of molding in place.  It is making sure all the appliances are hooked up and running correctly.  It is making sure all of the fixtures are in place.  In sum, it is making sure everything you wanted done is done.

Three Reasons It Is Hard

Why is the last 10% of a rehab so hard?  For three reasons I think

1.  Coordination

There are often many different contractors that have specific jobs to do in a major rehab.  These jobs often require coordination.  One contractor has to finish their job before another can complete theirs.  For example, you do not want to put carpet in until the painters have finished.  Coordinating all of this and being able to do it properly is a special, learned skill.  Not everyone has it and one mess up can set everyone else back.

2.  The Little Details

Now is the time when the little details matter.  The details are what are going to be seen by your final customer, be they a tenant or a buyer.  They will touch the door knobs and the faucet handles.  They will see the missing molding and switch plates.  They will notice stickers on light and plumbing fixtures.  It is these little details that make your project stand out above the rest and must be done.  The thing is, they can be easily missed or passed over.

3.  Everyone Is Tired Of the Project

The initial excitement of starting a project, felt by both you and your contractors is gone.  Everyone is now ready to move on.  In fact, many of your contractors have likely already moved on to the next job.  And getting them to pull their crew off another big job to finish that last little bit for yours can be like pulling teeth.

So What To Do?

Here are a few ideas to ensure that last 10% gets finished without becoming too much of a pain.

  • Start With A Good Contract – A good contract at the front end helps greatly. Spell out everything you expect to be done and when you expect it to be done.
  • Hold A Significant Final Payment – Never pay in total for any job until a job is completed. In fact, hold back as much as you can get your contractor to agree to.  That lure of money is often the only thing you have to get folks moving and finishing the job.
  • Develop A Final Punch List – Make that last payment contingent upon a final punch list. Go through your rehab as it is nearing completion and make a list of all of the little things that need to be done to get that last payment.  This will help both you and your contractor see the light at the end of the tunnel.
  • Add a Bonus – Money talks.
  • Add a Penalty – Maybe. But what happens if they run past the deadline anyway (which they often do)?  What incentive will you then have to keep them going?  I have not found penalties to be very useful.

The Final Analysis

I think that in the final analysis, getting that last bit of the job completed with minimal difficulty comes down to spelling out details on the front end and management.  What you want has to be spelled out on the front end, in writing.  Then, you or your contractor has to manage the job closely, especially towards the end.  Someone has to be available to answer questions, make decisions, smooth out the bumps and even yell at folks if necessary.  Someone has to keep the ball rolling and handle problems quickly.  That someone is often you whether you like it or not, it is just part of the life of a real estate investor.

They say that the devil is in the details.  The last 10% of any rehab job is nothing but details, hence the difficulty.  But knowing where the devil is going to be is half the battle and will help you get past him.

What do you think?  Is the last part of a rehab project the hardest?  Let me know with your comments.