Why I HATE Rehab Flipping! | House Flipping Mistakes To AVOID
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Real estate investor Justin Colby, known for flipping over 2,000 homes, shares his insights on rehab flipping and its challenges. He emphasizes the difficulty in working with reliable contractors, the substantial financial investment, and stress involved in scaling a rehab business. Colby stresses the importance of paying a premium for expert labor and managing time efficiently to control project expenses. He highlights the significant risks and financial pressures involved in managing a high volume of rehab projects. Additionally, he discusses the potential minimal profits after factoring in closing costs and commissions, as well as the substantial costs and risks associated with scaling a rehab business. Colby also points out the high level of risk involved in rehabbing, particularly in the current market environment with rising interest rates. He advises caution and strategic decision-making, opting to wholesale or retain properties as rentals if they do not meet his profit margin criteria. Furthermore, Colby highlights the potential of short-term Airbnbs in specific locations like Miami and Scottsdale, Arizona, emphasizing the variability of profit margins and recurring monthly income they offer. He shares insights from friends earning substantial monthly gross rents from Airbnbs and stresses the importance of being a well-rounded real estate investor with diverse exit strategies. Colby concludes by highlighting the necessity of embracing multiple real estate investment approaches for a comprehensive business strategy.
Real estate investor Justin Colby, known for flipping over 2,000 homes, shares his insights on rehab