I’ve been talking to quite a few would-be investors lately about the difference of rehabbing to a rental standard versus rehabbing to sell. And it’s really not all that complicated. Without sounding too cold you really just rehab everything not quite as nice.
What I mean is instead of granite counter tops you go with a very nice Formica. Contractor grade carpeting instead of the best. Contractor packs of lighting fixtures instead of hand picking each and paying the individual mark-up. Refinishing cabinets instead of replacing. And etc.
This will help increase your equity margin. Now, in three, four or six years down the road when you want to sell you may very well wish to wait for a vacancy and plan on 60 days holding to rehab up to sales standards. Or if you keep the place nicely maintained through the years you may very well be able to sell the place as a performing investment property.
Pennies count in any kind of rehab. Doubly so when you are trying to increase sweat-equity.