Finding The Cheapest Property

By
Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

 Last week we talked about getting into Real Estate because it is so much fun and good agents make it look quite easy. 

 

This week it about inexperienced buyers who are ready to buy low and sell high and fast.

 

Let's talk about rehabbers, i.e., flippers.

During the week, callers ask for cheap homes in disrepair to fix them and make a ton of money.

Some do very well in RE, and some who do very well at rehab properties.

 

When you are ready to purchase and see what was paid for the house last year and the new listing price, you may think, WOW, now that's a great return, I'm ready to make that kind of profit.

If it sounds too good to be true, you might want to check it out.

 

When buying into your first investment/rehab home, there are many things to watch out for.

Do you have someone who can keep an accurate account of all expenses? From rekeying the locks on the first day to ordering big-ticket items like flooring and don't forget the cost of dumpsters, demolition, permits, and electrical updates. Don't forget to count the small expenses like tools, hardware, paint, drawer pulls.

Are you that handy? Can you expertly fix items, and will they be up to code? Don't forget to factor in the cost of a general contractor, plumber, electrician, roofer, radon mitigation, landscaper, HVAC, painter, and so many others.

Get a home inspection even though you are buying "as is," so you have an idea of the hidden costs like sewer, termite damage, or mold. Many of those are not visible until demolition has started. 

 

During the week, it not unusual to get a call for distress properties. The latest call from a woman who wanted to get her sons in the business. She asks me to send a list of cheap homes so her boys can make a nice profit. There was no thought of how much or of the location.  It was interesting that mommy called and not the sons.

There is more to it than finding the cheapest property!

Want to talk about a home

Call Margaret Rome

 

 

Margaret Rome

 

 

 

Comments (13)

Shayne Stone
Champion Real Estate Group - Missouri City, TX
"Your Rock Solid Choice Realtor"

Great advice, thanks!

Nov 02, 2020 07:15 PM
Margaret Rome Baltimore 410-530-2400

Thanks, Shayne Stone for stopping by.

Nov 02, 2020 07:26 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Yes, great subject Margaret Rome Baltimore 410-530-2400. Many want to get involved in the world of buy low and sell high fix and flip. what I do is provide a list of the least expensive homes price/sf in a more expensive neighborhood. The reason, they are priced less (they need fixing or on  a busy street or next to power lines or another issue that may be more difficult to address. The Buyer has to determine how much they want to put into the home...for sure. Jeff 

Nov 02, 2020 07:18 PM
Margaret Rome Baltimore 410-530-2400

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI  This is great advice...


what I do is provide a list of the least expensive homes price/sf in a more expensive neighborhood.

Nov 02, 2020 07:28 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Margaret Rome Baltimore 410-530-2400 very valuable report about finding cheapest property.

Nov 02, 2020 07:22 PM
Margaret Rome Baltimore 410-530-2400

Always good to see you John Pusa 

Nov 02, 2020 07:29 PM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Margaret Rome Baltimore 410-530-2400 the bottom line, in my opinion, is what the flipper initially pays for the property and how well he estimated the cost of the work needed ..... it's a numbers game and some play better than others!!!!  

Nov 03, 2020 03:53 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Margaret - get rich quick schemes can be tempting whether they involve real estate or other aspects of real life.  What "works" for some does not "work" for all.  There are many "moving parts" with any plan.  Proper preparation and a good plan are just pieces - so much more is necessary.  

Nov 03, 2020 04:27 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Margaret. Price is not the only consideration. The cost of rehab is always a shot in the dark if you are not prepared. Enjoy your day!

Nov 03, 2020 04:46 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I’m always looking for orphan(vacant) lots for my builders . It’s rare to ever see a real pre- Flip in the MLS .

Nov 03, 2020 04:50 AM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Margaret- all you have to do is watch some of the flipping shows on cable tv. 

Nov 03, 2020 05:28 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Barbara Todaro It is a numbers game. Some play better than others.

Nov 10, 2020 07:57 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Michael Jacobs I love when you stop by and share your wisdom.

Nov 10, 2020 07:58 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Wayne Martin So true. The cost and integrity of the flipper is pretty important.

Nov 10, 2020 07:59 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Michael J. Perry 

Pre flips and vacant lots are not easy to find.

Nov 10, 2020 08:01 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Kathy Streib ,Oh if only it was that easy! Love it when the wrong counters or cabinets arrive and they are replaced within hours on the TV show. Not quite so fast in real-time.

Nov 10, 2020 08:04 AM

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