Real Estate Investing with Coach Carson #458: Don't Start a Rental Remodel Until You Do This First
Nov 10, 2025
In this discussion, Tracy Royce, an experienced investor and remodel expert, shares her insights on avoiding common remodeling pitfalls. She emphasizes the importance of data over emotions when starting a project. Tracy advises focusing on cosmetic to mid-level rehabs as a beginner, using comparables to determine value, and creating detailed scopes of work to enhance accuracy. She also suggests sticking to your strengths and cultivating respectful relationships with contractors for efficient project management. Finally, she introduces quick screening methods for estimating rehab costs.
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Choose Lower-Risk Scopes First
- Start with cosmetic to mid-level rehabs as a beginner to limit time, cost, and risk.
- Aim for at least a 10% profit on flips and increase buffer for bigger scopes.
Costly Mistake From Inexperience
- Tracy described a new flipper who cut trusses and botched a roof, creating $50k in fixes.
- The flipper was likely financially devastated after being way in over her head.
Invest In Durable Rentals
- For rentals, front-load quality to attract better tenants and reduce turnover.
- Invest in durable, commercial-grade fixtures to lower long-term maintenance costs.