The idea regarding flipping a Richboro house is straightforward: purchase a run-down house, carry out a small amount of remodeling, and then sell it for a much bigger amount. There is no doubt that house flipping has created large returns for many investors all over the country. But then flipping houses also carries a high amount of risk, and a flipping project can easily change into a financial nightmare.
House flipper Carol Sankar of Charlotte, NC shares about a project in which the home was burglarized multiple times during the remodel. It was one day when the project was about to finish, she showed up at the house to discover that the kitchen cabinets had been stolen right off the walls. A dishwasher and a refrigerator were even stolen. Because the property was in a territory with few security measures and a low police presence, there was little Sankar could do to regain her stolen materials and appliances.
In another story, Daniil Kleyman in Richmond, VA, purchased a project house for what he thought was a great bargain. An experienced investor, he carried out a preliminary market assessment on the property and thought he would be able to remodel and sell it for five times his cost. Regretfully, Kleyman made a string of oversights that forced him to lose money on the flip.
Apart from the fact that the first contractor he hired quit the job, left with his capital and didn’t finish the job he was hired to do, Kleyman had also used the wrong comparable properties when estimating his post-remodel sales price. He had to list the property for far less than he had intended. And then the house was burglarized, stripped to the walls, plumbing broken and flooding the basement. After fixing the destruction and replacing the stolen appliances and fixtures, Kleyman was afterward able to sell the house at a loss to a less-than-keen client.
Kleyman’s story, notably, is one that represents a number of setbacks that accompany flipping houses for resale. This investor would have considerably prospered from accurate market data, proven construction professionals, and the expertise of property management professionals from the beginning. See how this circumstance might have transpired had he invested in the property as a rental home instead.
By consulting with an industry expert such as Real Property Management Prosperity, he would have collected a detailed market assessment prior to purchasing the property. He would have known the market value of the property from the very beginning, possibly, changing some of the choices he made subsequently.
RPM Prosperity would have also delivered Kleyman with the names of trusted remodeling and repair vendors in his locality and would have monitored with those vendors occasionally, significantly decreasing the possibilities that the contractor he hired would take his money and run off. Ultimately, the team would have accurately priced and marketed his new property for him, bringing in quality tenants happy to pay a competitive rental rate every month for as long as Kleyman wanted to keep the home.
Notwithstanding these clear benefits, some investors think that partnering with a property management company is too extravagant. Despite that, as this model illustrates, Real Property Management Prosperity possesses valuable services and industry connections that can help investors make far more money long-term than flipping houses might bring. By all means, we handle all of the operational demands of owning rental properties, leaving you free to work on other aspects of your real estate business.
With Real Property Management on your investment team, you’ll have the guidance of experts who are happy to grow every one of your properties into one of the best long-term investments you can make. For more information, contact us online or call us at 267-433-4200 today.
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