I love my job because it's different every day. One day, I might be working with a family who is relocating to Roanoke, and I get the opportunity to show them my hometown. The next day, it might be empty-nesters who are looking to downsize into their next dream home.

I also work a lot with real estate investors. These folks buy homes that are in poor condition, often have been foreclosed on, and are in the hands of the bank or a foreclosure company. After the purchase, the investors rehab the house -- doing repairs and adding upgrades that get the home back in liveable condition -- and resell it, hopefully at a profit. This is also called "flipping."

What I love about rehabbed homes is that they often present super opportunities to buyers who otherwise wouldn't be able to afford a home with all the upgrades found in a rehab: A young couple, for example, who's looking for something under $150,000, can luck into a home with a sparkling new kitchen, upgraded bathrooms and central heat and air. Rehabbed homes also can bring pride and new energy into a neighborhood suffering from blight.

Rehabbing homes can be a rewarding experience and a smart financial move. But it's important to go into the process with your eyes wide open. These are some things you need to know:

Most homes that need a full rehab are bought with cash.

The notion of buying a home with cash is off-putting to some people, but for a variety of reasons, it's usually the way these transactions are handled in the Roanoke Valley. This is especially true for an investor who's been rehabbing homes for a while. To get the deal you need to on the home, you have to act fast, and the buyers who come with cash can act fastest.

It's not impossible to borrow money for rehabbing a home, but consider these two things: (1) You'll need to be prepared with proof of funding when it comes time to make an offer on the house. (2) Don't forget to consider the cost of borrowing money in your overall budget.

Investment properties are almost always sold "as is."

"As is" means just what it says: The buyer agrees to purchase the house in its present condition with no repairs made by the seller, whether that's the bank or a foreclosure company. You may or may not be able to negotiate an inspection contingency for anything huge that comes up, but don't count on it. If the seller has another offer without the contingency, you lose. So take a careful look when you do the walkthrough, and assume you'll find other things you didn't see on first look.

Think about budget and resale price from the start.

The whole point of rehabbing a home is making a profit, and sometimes there's not a lot of wiggle room. Your budget needs to consider what you can pay for the home and the cost of the work that has to be done before the home can be sold. In addition, you need to consult a Realtor who can give you an expert opinion about a realistic resale price.

That last part might be the one that gets inexperienced investors most often. They're very concerned about what they're going to pay for the home and the cost of the work to be done, but they don't consider the resale price until they're ready to put the home on the market. Often, they've been assuming some ballpark figure, but they haven't consulted anyone who knows anything about the Roanoke real estate market. If they've been ballparking too high all along, they may have trouble breaking even. As a general rule, overestimate the cost of repairs and underestimate the post-rehab value to give yourself a little extra breathing room.

Hire an agent who is experienced in foreclosure and estate sales.

An agent who has successfully handled rehabs in the past will be able to help you make a good deal on the property, estimate repair costs and settle at a good list price for resale. They'll also be able to help you decide when a home just needs too much work to make it a good candidate for rehab within your budget.

Have more questions about rehabbing homes in the Roanoke Valley? I'd love to talk through the process with you. Contact me anytime at (540) 793-0442 orrpayne@mkbrealtors.com.