The concept regarding flipping a Rio Rancho house is quite uncomplicated: purchase a run-down house, do a little remodeling, and then sell it at a higher price. There is no questioning that house flipping has produced large returns for many investors all throughout the nation. But flipping houses also brings a possibility of risk, and a flipping project can quickly turn into a financial nightmare.
House flipper Carol Sankar of Charlotte, NC narrates how in one project the home was burglarized multiple times during the remodel. One day approaching the end of the project, she arrived at the location only to discover that the kitchen cabinets had been stolen right off the walls. A dishwasher and a refrigerator were also stolen. Because the property was in an area with few security measures and a low police presence, there was little Sankar could do to regain her stolen materials and appliances.
In a different occurrence, Daniil Kleyman in Richmond, VA, purchased a project house for what he assumed was an easy house flip. As an experienced investor, he accomplished a preliminary market assessment on the property and forecasted that he would be able to remodel and sell it for five times his cost. Ruefully, Kleyman made a series of misjudgements that ended up in him losing money on the flip.
Not only did the first contractor he hired walk out of the assignment with his money and without fulfilling the job he was hired to do, but 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 initially wanted. And then the property was burglarized, stripped to the walls, plumbing broken and flooding the basement. After repairing the destruction and replacing the stolen appliances and fixtures, Kleyman was finally able to sell the house at a loss to a less-than-enthusiastic customer.
Kleyman’s story, to be specific, is one that proves to be a combination of the predicaments that can come with flipping houses for resale. This investor would have significantly flourished from accurate market data, proven construction professionals, and the expertise of property management professionals from the onset. Learn how this circumstance might have transpired had he invested in the property as a rental home instead.
By first consulting an industry expert like Real Property Management Albuquerque, he would have been given a detailed market assessment prior to purchasing the property. He would have learned the market value of the property from the start, possibly modifying some of the decisions he made later on.
RPM Albuquerque would have also provided Kleyman with the names of trusted remodeling and repair vendors in his area and would have supervised those vendors often, hugely lowering the opportunity that the contractor he hired would take his money and run. Also, the team would have accurately priced and marketed his new property for him, procuring quality tenants primed to pay a competitive rental rate every month for as long as Kleyman wanted to keep the home.
Even with these clear benefits, some investors maintain that operating with a property management company is too costly. But for all that, as these instances display, Real Property Management Albuquerque offers an assortment of valuable services and industry contacts that can help investors make far more money long-term than flipping houses might bring. Actually, 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 get the support of professionals who are effective at making every one of your properties one of the best long-term investments you can make. For more information, contact us online or call us at 505-831-8700 today.
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