Tips for purchasing rentals and flips

I would love to offer a few tips for purchasing a rental or flip.

It is important to pay attention to the homes within eyesight of the prospective property. Buyers don't want to be next to the worst house in the neighborhood and will choose not to buy a home if the house next door is run down or unattractive.

For a flip you want to be thinking about passing FHA mortgage appraisal guidelines: no peeling paint, flooring on all floors, no holes in the walls, railings on the stairs and the well must be outside of the home's foundation.

Items that help a home to sell: large bedrooms, master bath, formal dining room, finished basement, storage closets, new windows, fenced yard, garages.

A perfect flip will have all of the above items but simply needs updated. Paint,flooring, lighting, kitchen counter and bathroom vanities are the typical updates. The age of the furnace is also important, try to have a least a 90% efficiency or keep the price down.

Modern lighting can make a major difference in the appeal of the home.

Sometimes you will find a home with all of the above items outdated but in good condition. If it will cost next to nothing to have the home livable, you may want to consider doing the minimum cleanup and renting. In many cases you can knock money off the first few months rent and the tenant will do any painting and cleaning themselves.

When a home is marked way below the average for a quarter mile radius and has over 1000 square feet with a basement and a garage it is probably a good flip potential. Reconfiguring the infrastructure works best for adding  "perfect flip" items to the home. Plan to also replace the copper, furnace, siding and windows as part of the budget. Always have the well and septic inspected whether purchasing or selling the home. It can cost over $20K to attach to a city sewer due to a failed septic inspection.

There are items that allow you to have a higher rental rate than average in the area: fenced yard, a good school district, garages and extra storage. The right school district can make your investment into a gold mine. Rent-to-own with a 10% down payment to be subtracted from the price at the time of sale is another way to attract top dollar tenants; all leases must be drawn by an attourney.

Always remember the most important rule to flipping or renting a home: Location location location!

Tips for moving: 4 things to leave behind

4 Things to Leave Behind When Moving

There are many "moving" parts that have to come together for a successful move. Ensure you can move on without looking back by leaving these important items behind when you move. 

Spare Keys
Collect all house keys for your home's next owner. If you have multiple keys, such as deadbolt, window, or shed keys, label them so the future owners don't have to call you with questions.

Garage Door Opener
The garage door opener is a staple in your car, so you might make it all the way to your new house before you notice it. Remember to remove it from your vehicle on moving day.

Borrowed Items
Did you borrow your neighbor's blender? Did your friend loan you their favorite movie? Return these items before you move to save yourself from the wrath of your friends (and shipping costs).

Rental Items
You might have terrible memories of your elementary school librarian hounding you about an overdue library book. Save yourself from a similar (and more costly) experience, and return any rental items before hitting the road.

Bank owned home scam in Brimfield on Craigslist

This happened to a bankowned home in Brimfield, Ohio with an MLS list price of $210,000 that I was showing to a client 6/3/2015. $210K is a low price for this home. We tried to see it two days earlier but could not because the lockbox had been stolen. The home's property management team was called to replace the lockbox and the new code assigned.  Myself and three other Realtors were waiting to take clients through. The first realtor there was met at the door by a woman that said she purchased the home that morning and the home was not for sale. Apparently she replied to an ad on Craigslist (which I did not see), met a man at the home,  filled out a one page form and handed the man $18,000.00. He in turn gave her the keys to the home.  While she was filling out her form the man was changing all of the locks for her. That is all that I know except that when I showed the beautiful house the neighbors asked if the home was sold because a woman ran to his home yesterday and introduced herself as his new neighbor. I assured him it was not but hadn't heard the story yet.
Crazy, right?
Why would anybody think they could by a quarter million dollar home for $18K?
We'll see if it makes the local news.