The premise behind flipping a Chesapeake house is easy: purchase a run-down house, possibly do a touch of remodeling, and then market it for a much pricier amount. Without any question, house flipping has assisted in giving large returns to many investors everywhere in the country. Except flipping houses also produces a higher measure of risk, and a flipping project can quickly change to a financial nightmare.
House flipper Carol Sankar of Charlotte, NC reveals the account of one project in which the home was burglarized multiple times during the remodel. Towards the period of fulfillment for the said project, she revisited the house only to learn that the kitchen cabinets had been stolen right off the walls. A dishwasher and a refrigerator were also missing. Considering the fact that 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.
A different occurrence befell Daniil Kleyman in Richmond, VA, where he purchased a project house for what he originally considered was a great plan. An experienced investor, he prepared a preliminary market assessment on the property and assumed to be able to remodel and sell it for five times his cost. But what happened next was Kleyman acted on several unfavorable decisions that ended in him losing money on the flip.
Not only did the first contractor he chartered resigned from the job and ran away with his money without achieving the task he was contracted to do, but Kleyman had also used the wrong comparable properties when estimating his post-remodel sales price. He was constrained to list the property for far less than he had meant. And then the property was burglarized, stripped to the walls, plumbing broken and flooding the basement. After repairing the damages and restoring 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 highlight, is one that exhibits the various predicaments that go with flipping houses for resale. This investor would have significantly profited from accurate market data, proven construction professionals, and the expertise of property management professionals from the start. Think of how this circumstance would have concluded otherwise had he invested in the property as a rental home instead.
By consulting an industry expert like Real Property Management Hampton Roads from the very beginning, he would have gained a detailed market assessment prior to purchasing the property. He would have acknowledged the market value of the property from the inception, maybe even adjusting some of the options he made later.
RPM Hampton Roads would have also supplied Kleyman with the names of trusted remodeling and repair vendors in his place and would have kept a close eye on those vendors every now and then, significantly diminishing the possibility that the contractor he selected would take his money and quit. Certainly, the team would have accurately priced and marketed his new property for him, finding quality tenants willing to settle for a competitive rental rate every month for as long as Kleyman wanted to keep the home.
Even with these clear benefits, some investors still regard working with a property management company as too costly. Nevertheless, as this case confirms, Real Property Management Hampton Roads allows a range of valuable services and industry contacts that can help investors make far more money long-term than flipping houses might bring. 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 direction of experts dedicated to 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 757-395-4274 today.
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