The assumption when flipping a Naples house is straightforward: purchase a run-down house, do some minor remodeling, and then sell it for a considerably larger figure. There is no doubt that house flipping has created large returns to many investors in the nation. But flipping houses also comes with a high order of risk, and a flipping project can swiftly transform into a financial nightmare.
House flipper Carol Sankar of Charlotte, NC tells of one project in which the home was burglarized multiple times during the remodel. One day when they were close to completing the project, she appeared at the home 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 a neighborhood with few security measures and a low police presence, there was little Sankar could do to regain her stolen materials and appliances.
In a separate instance, Daniil Kleyman in Richmond, VA, purchased a project house for what he believed was an easy job. An experienced investor, he did a preliminary market assessment on the property and believed he’d be able to remodel it and sell it for five times his cost. Regrettably, Kleyman made a chain of blunders that culminated in him losing money on the flip.
Not only did the first contractor he hired leave with his cash and forgo accomplishing the job he was hired to execute, 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 originally planned. Unfortunately, the property was burglarized, stripped to the walls, plumbing broken and flooding the basement. After renovating the destruction and replacing the stolen appliances and fixtures, Kleyman was ultimately able to sell the house at a loss to a less-than-eager client.
Kleyman’s story, specifically, is one that indicates a lot of the dilemmas that occur when flipping houses for resale. This investor would have hugely aided from accurate market data, proven construction professionals, and the expertise of property management professionals from the start. Examine how this expertise could have helped him had he invested in the property as a rental home instead.
By consulting an industry expert like Real Property Management Rental Direction, he would have gotten a detailed market assessment prior to purchasing the property. He would have known the true the market value of the property from the outset, possibly changing some of the choices he chose later.
RPM Rental Direction would have also given Kleyman the names of trusted remodeling and repair vendors in his neighborhood and would have watched over those vendors repeatedly, lessening the opportunities that the contractor he hired could acquire his money and flee. Conclusively, the team would have accurately priced and marketed his new property for him, locating quality tenants set to pay a competitive rental rate every month for as long as Kleyman wanted to keep the home.
Regardless of these clear benefits, some investors think that partnering with a property management company is too expensive. Despite that, as this precedent establishes, Real Property Management Rental Direction possesses a mixture of valuable services and industry associations 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 Rental Direction on your investment team, you’ll have the aid of experts committed to building every one of your assets into one of the best long-term investments you can make. For more information, contact us online or call us at 239-240-8111 today.
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