Last Updated on September 1, 2025
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Don’t Be Afraid of Rehabs: Learn the Basics
A lot of people want to make money in real estate. They worry about buying a house that needs a lot of repairs or being stuck with a project they cannot finish. Fixing houses (called rehabbing) does not have to be scary. It teaches you how to judge if a house is worth buying, how to work with builders, and how to build a good team. This guide uses simple words to show why tax deed investing is still a good idea even when a house needs work.
Why Rehabs Are Good Teachers
When you fix up a house, you learn skills that help you with every real‑estate deal:
- Looking at the house: You must decide if the house is worth buying, even if it needs repairs. You do this by checking what other updated houses in the area sell for. You should also write a list of all repairs so you know where you will spend money.
- Managing workers: You need good workers to fix the house. Knowing where to find them, checking their past work, and comparing prices saves time and money.
- Working with a team: Real estate projects are easier with a trusted team. Hire people with different skills, like builders, designers and inspectors. Make sure everyone knows their job. A mix of people with different strengths helps everyone learn.
How to Check a Property
Here are simple steps to decide if fixing a house is a good deal:
- Learn the area: Look at houses that sold recently in the same neighbourhood. Check the size, layout and finishes of these homes. This helps you see which upgrades add value and which you can skip.
- Inspect the house: Hire an inspector to find safety or structural problems. Inspectors look at major systems like electric wires, plumbing, foundation, heating, air and roof.
- Make a repair list: Write down every repair and upgrade you need. Make sure your plan matches your goal, whether you want to rent the house or sell it. This prevents spending too much on upgrades that do not raise the sale price.
- Get quotes: Ask at least three contractors for prices and references. Compare their quotes and set aside extra money for surprises.
Common Repair Areas
The table below shows common repair areas and what to think about:
| Area | What to look for |
| Paint inside & outside | A fresh coat of paint can make a house look new. Use neutral colors that most buyers like. |
| Floors | Fix broken tiles or worn carpets. Use the same type of flooring in all rooms for a smooth look. |
| Heating/AC | Check how old the heater and air conditioner are. Plan to service or replace them if needed. |
| Roof & Soffits | Look for wear or leaks. You may need to repair or replace the roof. |
| Wires & Pipes | Fix safety issues, leaks and old systems. |
| Kitchens & Bathrooms | Update cabinets, appliances, sinks and tiles. Match the upgrades to the neighborhood. |
| Lights & Yard | Update cabinets, appliances, sinks and tiles. Match the upgrades to the neighbourhood. |
| Outside buildings & Pool | Fix sheds or porches. Decide if pool repairs are worth it and handle pest problems. |
How to Work with Contractors
A successful rehab needs workers who do good work. Here are tips on finding and managing them:
- Ask people you know
Talk to other landlords or investors to find good contractors. If you are new to the area, join local real estate groups.
- Use online lists
Websites like Craigslist and Thumbtack let you find and compare contractors. Always interview them and check that they have licenses and insurance.
- Check their work
Visit a job they are working on. See if the site is clean and organized. Look at details like straight floors and smooth paint. This tells you if they care about quality.
- Compare prices
Do not pick the cheapest price without thinking. Get at least three quotes and ask about materials, schedule and payment. Very cheap bids may mean poor work.
- Use written contracts
Put everything in writing. A contract should include the list of repairs, total cost, schedule and payment plan. This protects both you and the contractor.
Building a Good Rehab Team
Most successful investors do not work alone. They build a team of people: agents, contractors, managers, lenders and mentors—who share their goals. When you have a strong team, everyone’s strengths add up.
Tips for Team Work
- Different skills: Choose people with varied talents, negotiating deals, handling money, marketing and building. A team with both experienced people and beginners brings knowledge and new ideas.
- Clear jobs: Give each person a clear role so they know what to do. This stops people from doing the same job twice and helps the project run smoothly.
- Shared values: Pick people who have similar values and work ethic. Talk often so everyone stays informed and motivated.
- Good leadership: A good leader sets goals, celebrates wins and trusts the team to do their jobs. Letting people work without too much control helps them grow.
A good team is not just about skills; it is about trust. When the right people work together, projects finish on time and on budget.
Why Tax Deeds Are Still a Good Idea
In tax deed investing, you buy properties at auctions because the owners did not pay their taxes. You can get a property for a very low price and sell it for more later. Some tax deed homes need a lot of work. Do not run away from these deals. Use the rehab lessons above to fix these homes and turn them into profit.
Benefits of Tax Deeds
- Low prices: Tax deed auctions let you buy homes for much less than market value. This leaves money for repairs.
- Better neighbourhoods: Fixing up an old house makes the area look nicer and can raise nearby home values.
- Long‑term profit: A repaired home can earn rental income or go up in value over time. Selling the house for a profit can help you buy more properties.
Common Questions
A tax lien is a claim for unpaid taxes. Investors earn interest when the owner pays back the taxes. A tax deed gives you ownership of the property. Some tax deed homes need repairs, but the returns can be high.
To guess the value after repairs, look at homes that sold recently and are like yours in size and style. Adjust for differences in features and condition.
Many investors keep 10–20 % of the total repair budget for unexpected problems. This helps cover hidden costs.
Match your upgrades to the neighbourhood. Focus on kitchens, bathrooms and the outside of the house. Too many fancy upgrades can waste money.
You do not need a license to work on your own house. But for electrical, plumbing and structural work, you should hire licensed experts. Always check that contractors have licenses and insurance.
Don’t Let Fear of Rehabs Hold You Back
If you’ve been hesitant about jumping into tax deed investing because of potential rehab work, this video is for you. It’s encouraging, informative, and shows you that with the right mindset and approach, you can handle any challenge real estate throws your way.
I’ll see you in the video above.
-Dustin
PS: If you haven’t subscribed to our YouTube channel yet, now’s the time! We’ve got tons of fresh content ready for you, covering everything from tax liens to managing your first flip. Check the link in today’s video!
