The conception about flipping a Brooklyn house is easy: purchase a run-down house, perform a brief remodeling, and then market it for a considerably greater cost. There is no doubt that house flipping has caused large returns to many investors throughout the nation. Nevertheless, flipping houses also conveys a high level of risk, and a flipping project can rapidly turn into a financial nightmare.
House flipper Carol Sankar of Charlotte, NC reveals one project in which the home was burglarized multiple times during the remodel. Near the conclusion of the project, she came to the home to find that the kitchen cabinets had been stolen right off the walls. A dishwasher and a refrigerator were also stolen. As 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 another similar experience, Daniil Kleyman in Richmond, VA, purchased a project house for what he assumed was a good candidate for house flipping. An experienced investor, he executed a preliminary market assessment on the property and anticipated to be able to remodel and sell it for five times his cost. Unluckily, Kleyman created a sequence of mistakes that ended in him losing money on the flip.
Not only did the first contractor he hired abandoned the project and fled with his money, but Kleyman had also used the wrong comparable properties when estimating his post-remodel sales price. He needed to list the property for far less than he had prepared. Eventually, the property was burglarized, stripped to the walls, plumbing broken and flooding the basement. After fixing the devastation and changing the stolen appliances and fixtures, Kleyman was finally allowed to sell the house at a loss to a less-than-excited customer.
Kleyman’s story, most importantly, is one that shows a lot of the issues that come along with flipping houses for resale. This investor would have gained from accurate market data, proven construction professionals, and the expertise of property management professionals from the beginning. Observe how this incident might have evolved had he invested in the property as a rental home instead.
By first consulting an industry expert such as Real Property Management New York Gold, he would have gotten a detailed market assessment prior to purchasing the property. He would have recognized the market value of the property right from the start, perhaps modifying some of the choices he made afterward.
RPM New York Gold would have also furnished Kleyman with the names of trusted remodeling and repair vendors in his region and would have supervised those vendors regularly, reducing the odds that the contractor he hired would take his money and run. Finally, the team would have accurately priced and marketed his new property for him, discovering quality tenants ready to pay for a competitive rental rate every month for as long as Kleyman wanted to keep the home.
In spite of these clear benefits, some investors assume that functioning with a property management company is too costly. Nevertheless, as this sample indicates, Real Property Management New York Gold gives a variety of helpful amenities and business connections that can help investors make far more money long-term than flipping houses might bring. In actuality, 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 assistance of specialists devoted to forming 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 347-905-5770 today.
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