No Lipstick On Pigs, Investment Properties Should Be Done Right!
It always amazes me how I see less than credible rehabbers try to pass off their quick fix and flip properties as 20% ROI excellent return, turn key investment properties. Often these properties are in the lowest income, highest crime areas and the cosmetics have been done nicely, while the systems have been left. The newbie investment buyer gets stuck with:
- A house with three layers of shingles on the roof, needing an expensive tear off very soon and a new roof.
- A 30 year old furnace and condensing unit that needs to be replaced in a year or so.
- Cast iron pipes, that may work but may leak, and may have very little water pressure due to the corrosion and build up in the pipes.
- Very bad windows that leak heat in the winter and absorb it in the summer.
These properties should be avoided, and buying in a neighborhood that is working class but has much lower crime and better pride of ownership and where the renovations have been done correctly makes a lot more sense. The investors that do things right often sell their properties for only a little more, making less profit, but you will actually get the returns you are hoping for and have less headache! These properties will:
- Have better curb appeal and attract more calls, showings, applications and rent out more quickly.
- Attract higher quality tenants who stay longer and pay rent on time.
- Have less turn over and lower turn costs from tenants moving out.
- Pay slightly higher rents.
- Have less headache from having to do repairs on deferred maintenance.
- Provide for much lower hassle.
- Provide for a true return instead of a projected one.
Recently we renovated a home that we bought for $9,000 on a decent working class street. It needed a lot of work, which was reflected in the purchase price, and we didn't skimp on anything. Everything is new and we can feel good about the 12% ROI that our investor should be able to get on a property that is outstandingly renovated. We can't promise 20% returns due to the expense of the renovation, but we can promise a very solid return on a property that is done right. No Lipstick On Pigs, Investment Properties Should Be Done Right!
If you have clients interested in turn key investment properties or if you have thought about buying high return 12-20% Return on Investment investment properties with management in place, please feel free to call me at 404-718-9126. We are always glad to answer questions and help you understand how to do things right!
If you would like to buy this property, here is the Craig's List Link: http://bham.craigslist.org/reo/4207244583.html
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