5 Deadly Reasons Not To Over Do It On Rehabs

Are you interested in rehabbing properties for profit? If so then this blog post will help you know what to do, what not to do, and will give you 5 deadly reasons not to over do it on rehabs (because it will cost you a lot of money and headaches if you do)…

There are a lot of rehabbing shows on TV, and they can be pretty entertaining to watch. Unfortunately, too many people see rehabs as an easy and fun way to get rich quick, which rehabs are most definitely not! Yes, it is possible to make good money on rehabs but it’s also possible to overdo it and end up losing money. Here are 5 deadly reasons not to over do it on rehabs.

5 Deadly Reasons Not To Over Do It On Rehabs

Reason #1. Your Budget Can Easily Go Out The Window

time is money Reasons Not To Over Do It On RehabsOn a rehab, you set a budget of money and time – how much money you want to spend and how much time you plan to spend it in. Unfortunately, it’s very easy for that budget to go out the window and you may end up spending more money and more time than you intended.

Overdoing rehabilitation in the context of real estate doesn’t have direct life-threatening consequences like the term “deadly” would suggest, but it can have severe adverse effects on your financial health and overall real estate investment strategy.

Overcommitting financial resources to rehabilitating properties can lead to financial strain and potentially result in debt. Rehab projects often involve substantial costs for renovations, repairs, and upgrades. Overspending on rehabilitation may exceed the property’s potential return on investment, leading to financial instability and debt accumulation

Reason #2. People Will Change It Anyway

Buyers want a house they can move into right away. And some buyers might want a house that is done up really nicely, although most buyers are looking for something plain that they can add their own personality to.

In fact, some buyers may even change the décor as soon as they move in, so your expensive and fancy paint job or cupboard doors might end up being covered over! Just stick with plain and neutral decoration to stay in budget.

Reason #3. Reduced Return on Investment (ROI)

Overspending on rehabilitation without considering the potential return on investment can significantly reduce the profitability of a real estate venture. It’s crucial to strike a balance between the amount invested in rehabilitation and the projected increase in property value or rental income. Over-improving a property beyond what the market demands can erode potential profits.

Reason #4. Money Is Only Made When You Sell

One of the most overlooked reasons for why you shouldn’t over do it in your rehab is because you only make money when you sell. The longer you are on the property working, the longer you delay your income.

You need to put together a straightforward plan, get in there, do the work, and then get the house sold ASAP. Overdoing it will only delay you.

Reason #5. You Are In The Rehab Business

You are in the rehab business, not the home decoration business. Your job is not to shock people with how beautiful the house is or how good your taste is in paint; rather, your job is to create a nice house that someone will want to pay you for. Period.

Over-rehabilitating a property can result in it being out of sync with the local real estate market. This can mean adding features or upgrades that the market doesn’t value or is unwilling to pay for. Overshooting demand can lead to difficulties in selling or renting the property, causing financial strain and limiting the success of the investment.


It’s easy to go overboard and do too much on rehabs but if you follow these 5 deadly reasons not to over do it on rehabs then it should help you make more money and keep more of that money as profit.

To succeed in real estate rehabilitation, it’s crucial to carefully plan, budget, and execute projects in alignment with the market demands and your investment goals. Seeking advice from experienced real estate professionals and conducting thorough market research is essential in avoiding these potential pitfalls.

If you’re looking for off-market properties at an attractive price or even just a great introduction to someone who can help you on this rehab, click here now and fill out form or call our office at (816) 724-6679‬

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