Do Cheap Rehab Repairs = Big Profits?

Do Cheap Rehab Repairs = Big Profits?


Joe Abbascia

Real estate investments and home flipping is all about the profit, right? You may be thinking that once you start flipping, you will want to cut as many corners as possible to save money and make big profits. However, if you take the time to watch other, seasoned flippers, you will find out something very quickly. Cheap rehab repairs never equal big profits. In fact, if you pay attention, you will notice that cheap has often led to flippers losing money. There are reasons for this, and in the end, you will see how cutting too many corners can cost you big.

You Get What Your Pay For

Have you ever heard the phrase you get what you pay for? It is often used in reference to restaurants, clothing and technology. However, it can refer to real estate and real estate repairs as well. If you choose that faucet that seems really cheap, chances are, there are reasons it is so cheap. Often, choosing fixtures, building materials and options for the home that are simply cheap will come back to haunt you in a hurry.


This is also true of the contractors you hire to do the work. Just because one contractor charges an inordinately low amount does not mean you should choose them. Often, contractors that seem too cheap could be cutting many corners, which would be downright disastrous to your finished product.

Potential Buyers Will Notice

Your next thought may be to choose better contractors but then use cheap materials and or cut back on upgrades and try to pass them off as high quality because it looks new. There is a big problem to this. At first glance, these cheap materials may look ok. However, potential homebuyers will not just glance. They are making a big investment, so they will look, and they will do so with a critical eye. If you choose Formica countertops when you should be using granite, buyers will notice. Unlike choosing a low cost light fixture, the buyers will be wowed by the granite sizzle features and not think twice about the lighting used. This approach will get it sold at the top of your market pricing.

Quality without the Hassle

Just how, then, can you make a big profit off a house flip if you have to spend more money on contractors and materials? There is a simple answer. You just need to be reasonable. If you look for contractors that offer fair prices, chances are, you will get much better quality of work done, and also get the flip done faster. Most potential buyers will not see the added value in that designer bathroom sink. They will notice ceramic tile over the sink! This value is huge; the cost difference is even bigger!

Another way you can make the most profit will be to understand the whole scope of the project and stick to your timeline. This is a house flip, not a refurbishment of your own home. You will need to keep the whole scope of the project in mind, and do not get bogged down in bickering over which paint color to use and what backsplash to pick. All you will do will be losing money. Instead, make decisions quickly and let the contractors do their work.

Do cheap rehab repairs equal big profits? No, they do not. In fact, they could actually cost you your profit in the long run. You need to make sure you see the difference between being cheap and being budget conscious so that you can have a successful and profitable flip that will work out for you and the homebuyers in the end.

Joe Abbascia is an expert property investor providing vital knowledge on how to buy properties wholesale, about flipping homes successfully and more. You can learn more by visiting

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