--- title: 5 Criteria for Identifying a Profitable Rehab Property description: Discover our five criteria for identifying a profitable rehab property and determine whether or not this is a venture that could be successful for you. image: https://www.trustdeedcapital.com/hubfs/images/Blog_Images/private-lenders-for-real-estate.jpg --- [![Trust Deed Capital](https://www.trustdeedcapital.com/hs-fs/file-16494019-png/images/trust-deed-capital-logo.png "Trust Deed Capital")](https://www.trustdeedcapital.com/) CALL 1 (888) 563-5588 Search ![Hard Money Lender Investors](https://www.trustdeedcapital.com/hs-fs/images/blog.png) ## [5 Criteria for Identifying a Profitable Rehab Property](https://www.trustdeedcapital.com/blog/5-criteria-for-identifying-a-profitable-rehab-property) Posted by [Ken Meyer](https://www.trustdeedcapital.com/blog/author/ken-meyer) on Tue, May 05, 2015 - [Tweet](https://twitter.com/share) ![private money loans](https://www.trustdeedcapital.com/hubfs/images/Blog_Images/private-lenders-for-real-estate.jpg "private money loans")In an uncertain economy, it's easy to [find homes that have been foreclosed](https://www.trustdeedcapital.com/blog/bid/154166/Types-of-Residential-Properties-That-Help-Make-Good-Investments), sold at rock bottom prices to help cover other debts, or homes that have been left sitting empty and untended for so long that they now need a little bit of help to become a livable property. Read our five criteria for [identifying a profitable rehab property](https://www.trustdeedcapital.com/blog/bid/146271/Investment-Property-Analysis-and-Key-Metrics) to determine whether or not this is a venture that could be successful for you. # Choose a property that will attract stable tenants Regardless of whether you intend to buy the property to sell or to rent, you may end up holding on to it for quite some time. Renting the property for a while may be your best option even if you intend to sell, and the best way to do that is to choose a property that will attract people who intend to stay there. If it's a family house (with three or four bedrooms, two plus bathrooms, etc.), then it should be in a good school district, with easy access to parks and shopping. Check out the area around the house. Would you want to live here? If the answer is no, then your buyers probably won't want to live there either. # Have a contractor walk through the house If you have a friend or family member that will do this for you, great! If not, you might pay $200-$300 to have someone walk through and come up with an estimate for you. Either way, that's money well spent. A contractor will be able to tell you whether you're looking at a great [investment](https://www.trustdeedcapital.com/blog/bid/139969/5-Considerations-When-Buying-Investment-Property) that just needs a little bit of help or a money pit. # Look for a property in an area with prices that have bottomed out Your [realtor](https://www.trustdeedcapital.com/realtors) will know what those areas close to you are. Take a look at the prices for the area, as well as what local homes are going for. It will take some research, but it's well worth your time and effort. # Choose a property that can be repaired quickly The more time you have to spend [repairing your new property](https://www.trustdeedcapital.com/blog/how-to-get-the-best-appraisal-value-for-your-investment-property), the less money you're going to make out of it. You have a substantial amount of money tied up in this purchase and you don't want it to just sit there. You want it to make you a profit! Therefore, you don't want a property where the projects just keep coming. # Be prepared to hire someone to do the work Factor that into your estimate of what your final cost will be. Unless you are a [contractor](https://www.trustdeedcapital.com/blog/the-importance-of-a-good-relationship-with-your-contractor) yourself and are just looking for something to do with your free time, you don't want to be tied to repairing the house yourself. It's tempting to assume that you'll do the work on your own to save some money, but in reality, you may end up with an unprofessional, unfinished look that prevents the house from making what you'd like when it goes on the market. [Contact us](https://www.trustdeedcapital.com/contact-us) with any questions you might have. [![New Call-to-action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/8e98db3f-db9c-4359-82c7-09cb77ecd993.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/8e98db3f-db9c-4359-82c7-09cb77ecd993) ### Have Questions? [![New Call-to-Action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/cf54edd7-d8f4-4871-aafd-a8cc5b76667e.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/cf54edd7-d8f4-4871-aafd-a8cc5b76667e) ### Subscribe via E-mail ### Connect With Us [![New Call-to-action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/0427129d-319c-4434-b1fc-8288f0a96fdf.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/0427129d-319c-4434-b1fc-8288f0a96fdf) [![Click me](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/9b675c39-e065-48bd-9be4-27a27260541f.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/9b675c39-e065-48bd-9be4-27a27260541f) [![Click me](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/768f75b8-2827-4c95-9d49-6cdf67e0fa5c.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/768f75b8-2827-4c95-9d49-6cdf67e0fa5c) ### Latest Posts ### Categories - [fix and flip (95)](https://www.trustdeedcapital.com/blog/topic/fix-and-flip) - [fix and flip real estate investments (43)](https://www.trustdeedcapital.com/blog/topic/fix-and-flip-real-estate-investments) - [fix rehab properties (42)](https://www.trustdeedcapital.com/blog/topic/fix-rehab-properties) - [real estate investing (38)](https://www.trustdeedcapital.com/blog/topic/real-estate-investing) - [fix and flip loans (34)](https://www.trustdeedcapital.com/blog/topic/fix-and-flip-loans) - [Smart Investing (29)](https://www.trustdeedcapital.com/blog/topic/smart-investing) - [hard money lenders (29)](https://www.trustdeedcapital.com/blog/topic/hard-money-lenders) - [hard money loans (27)](https://www.trustdeedcapital.com/blog/topic/hard-money-loans) - [real estate investors (24)](https://www.trustdeedcapital.com/blog/topic/real-estate-investors) - [buying investment property (23)](https://www.trustdeedcapital.com/blog/topic/buying-investment-property) - [real estate investments (23)](https://www.trustdeedcapital.com/blog/topic/real-estate-investments) - [real estate investor (23)](https://www.trustdeedcapital.com/blog/topic/real-estate-investor) - [Fix and Flip Education (22)](https://www.trustdeedcapital.com/blog/topic/fix-and-flip-education) - [Renting Strategy (20)](https://www.trustdeedcapital.com/blog/topic/renting-strategy) - [investment property (20)](https://www.trustdeedcapital.com/blog/topic/investment-property) - [real estate market (19)](https://www.trustdeedcapital.com/blog/topic/real-estate-market) - [hard money (17)](https://www.trustdeedcapital.com/blog/topic/hard-money) - [Rental Property (16)](https://www.trustdeedcapital.com/blog/topic/rental-property) - [borrowers (16)](https://www.trustdeedcapital.com/blog/topic/borrowers) - [hard money lender (16)](https://www.trustdeedcapital.com/blog/topic/hard-money-lender) - [Investors](https://www.trustdeedcapital.com/understanding-trust-deeds/) - [Understanding Trust Deeds](https://www.trustdeedcapital.com/understanding-trust-deeds) - [Our Business Standards](https://www.trustdeedcapital.com/our-business-standards) - [Yield Comparisons](https://www.trustdeedcapital.com/yield-comparisons) - [The Process](https://www.trustdeedcapital.com/investor-process) - [Available Trust Deeds](https://www.trustdeedcapital.com/trust-deeds-available) - [Investor FAQs](https://www.trustdeedcapital.com/investor-faqs) - [Investor Testimonials](https://www.trustdeedcapital.com/investor-testimonials) - [Investor Documents](https://www.trustdeedcapital.com/investor-documents) - [Borrowers](https://www.trustdeedcapital.com/borrowers/) - [Loan Programs](https://www.trustdeedcapital.com/loan-programs/) - [The Process](https://www.trustdeedcapital.com/borrower-process/) - [Borrower FAQs](https://www.trustdeedcapital.com/borrower-faq/) - [Borrower Testimonials](https://www.trustdeedcapital.com/borrower-testimonials/) - [Borrower Documents](https://www.trustdeedcapital.com/borrower-documents/) - [Brokers](https://www.trustdeedcapital.com/brokers/) - [Loan Programs](https://www.trustdeedcapital.com/broker-loan-programs/) - [The Process](https://www.trustdeedcapital.com/broker-process/) - [Broker FAQs](https://www.trustdeedcapital.com/broker-faq/) - [Broker Documents](https://www.trustdeedcapital.com/broker-documents/) - [Realtors](https://www.trustdeedcapital.com/realtors/) - [Loan Programs](https://www.trustdeedcapital.com/realtor-loan-programs/) - [The Process](https://www.trustdeedcapital.com/realtor-process/) - [Realtor FAQs](https://www.trustdeedcapital.com/realtor-faq/) - [About Us](https://www.trustdeedcapital.com/our-company/) - [Our Company](https://www.trustdeedcapital.com/our-company/) - [Our Mission](https://www.trustdeedcapital.com/our-mission/) - [Our President / CEO](https://www.trustdeedcapital.com/our-president-ceo/) - [Careers](https://www.trustdeedcapital.com/careers/) - [Contact Us](https://www.trustdeedcapital.com/contact-us/) - [Resources](https://www.trustdeedcapital.com/resources/) - [Recommended Links](https://www.trustdeedcapital.com/links/) - [Forms](https://www.trustdeedcapital.com/forms/) [![Trust Deed Capital](https://www.trustdeedcapital.com/hs-fs/file-16459350-png/images/foot-logo.png "Trust Deed Capital")](https://www.trustdeedcapital.com/ty-the-best-of-hard-money-articles#) - 120 Newport Center Drive, Suite 262 - Newport Beach, Ca. 92660 - CALL 1 (888) 563-5588 [![American Association of Private Lenders](https://www.trustdeedcapital.com/hs-fs/file-16459062-png/images/foot-assoc.png "American Association of Private Lenders")](http://www.aaplonline.com/) - [![Like us on Facebook!](https://www.trustdeedcapital.com/hs-fs/file-16456386-png/images/facebook.png)](http://on.fb.me/ovGeDr) - [![Follow us on Twitter!](https://www.trustdeedcapital.com/hs-fs/file-16497114-png/images/twitter.png)](http://twitter.com/#!/trustdeedcap) - [![Connect with us on LinkedIn!](https://www.trustdeedcapital.com/hs-fs/file-16469641-png/images/linkedin.png)](http://goo.gl/UXhHe) © 2015 Trust Deed Capital, Inc. | [California Bureau of Real Estate, Real Estate ](http://www.dre.ca.gov/) Broker #1805798-NMLS #296507 | [Privacy Policy](https://www.trustdeedcapital.com/privacy-policy) | [Contact Us](https://www.trustdeedcapital.com/contact-us)