Unusual Items Found in Properties

Some abandoned and foreclosed properties contain items left behind from the previous owner.  Furniture, clothes and trash are items that are commonly left behind, but have you ever found interesting items hidden within the house?

Some people have reported finding:

  • ashes belonging to the previous occupant
  • hidden cash
  • skeletons
  • living pets
  • chicken carcasses inside the property walls

I have always hoped to find something interesting when moving into a new property, but so far, no luck.  What is the oddest item you have ever found in a rehab property?

Read one of the articles regarding unusual items found in real estate properties here:
https://www.houzz.com/magazine/you-wont-believe-what-these-homeowners-found-in-their-walls-stsetivw-vs~14620335

Avoiding Frozen Pipes at Your Investment Property

A few weeks ago, Ohio experienced some very cold temperatures.  Many renters and homeowners were nervous about the potential of frozen pipes.  Of course, many people took proper steps to help with avoiding frozen pipes, including leaving cabinet doors open in cooler areas of the property and turning faucets on to a drip in cooler areas of the property.

Read The Rooter Works Plumbing & Drains’ Facebook post of great ways to avoid frozen pipes.

Weeks later, I heard about a property in my town which is vacant that had an alarm sounding as well as water pouring from an outside spigot.  Luckily, a neighbor noticed this and made a post on a social media site wondering if anyone know who owned the vacant house so they could alert the owners of what was happening.  Many people gave the neighbor ideas on how to figure out who owned the property.

How do you protect your investment properties from something like this happening?  Real estate investing is not your whole life, so you are not able to stay at your investment properties 24/7.  Do you take any precautions in case something like the alarm and water spigot were to happen to your investment property?  Do you introduce yourself to the neighbors and give them contact information if they were to witness anything unusual?  Do you set up cameras around the property so you can keep an eye on everything?  As always, it is important to have insurance on your investment property in case that is too late to prevent events like this.

Read our blog post, Protect Your Rehab Investments, to learn about insurance options for your investment properties.

Short-Term Rentals

We usually discuss rehab investments as properties that are sold or rented out to long-term tenants, and rarely discuss investment properties as short-term vacation properties.  More and more people are turning towards homes instead of hotels for getaways.  These types of properties can easily be found on websites such as Airbnb, VRBO and HomeAway.

It is important to look at the ROI for the property as a short-term rental house compared to having full time renters.  Depending on your location and the number of current vacation home rentals, some properties will be more successful as a short-term rental.  How do you determine how a property will be used?  If you currently have an investment property as a short-term vacation property, what are the benefits of having one?

Recently, more and more cities are passing restrictions on short-term rentals.  Some cities are looking to ban these types of rentals in residential areas due to housing shortages.  What could this mean for the real estate investment industry?

Preparing for Real Estate Investing in 2019

For many people, December is a hectic month filled with holiday preparations and celebrations. Between the busy times of the month, some real estate investors like to tie up loose ends for the year and start preparing for the upcoming year and their real estate rehab investments.

What do you consider your fiscal year to be? January to December? Or do you start from when you began your business? Whatever your fiscal year is, it is important to start and close the year similar each time.

Read the Forbes article about real estate investing and the end of 2018 here – https://www.forbes.com/sites/forbesrealestatecouncil/2018/11/28/set-up-for-success-in-2019-13-real-estate-investment-moves-to-make-before-2018-ends/#11e1577d6cf6

One of the most important parts of preparing for the next year of real estate investing, is to understand what is predicted for the real estate industry.  According to Forbes, in 2019, “Mortgage rates will continue rising,” “Millennials will keep buying homes — despite those rising rates,” “Overall home sales will drop,” and “National rents will rise, but apartment construction could ease renters’ pains.”

Read full article here – https://www.forbes.com/sites/alyyale/2018/12/06/2019-real-estate-forecast-what-home-buyers-sellers-and-investors-can-expect/#64abe5d70d9a

With these predictions for 2019, will you be making any changes to the way you invest in real estate?

2018 Q2 and Real Estate Investing

ATTOM Data Solutions released a motivating article in September for real estate investors.  Even though these statistics are in regards to the second quarter of 2018, the article reports interesting information regarding the real estate industry.

Some interesting takeaways from the article include:

– “Buyers have plenty of choices and only the top-quality homes are selling.  This means investors need to fine tune their operations and pricing models and deliver model-like homes in order to compete.”

– “‘Financing can be the answer to making more profit overall: an investor that nets $30,000 per flip after paying $5,000 to $10,000 for financing costs can make $90,000 on three flips with the same amount of cash required to make $40,000 on a single flip. For some experienced investors, it’s possible to do 20 to 30 flips per year with financing versus 10 or less using all cash.’”
     – Read our blog post about this topic here – http://recasafinancial.com/what-will-your-investment-give-you-in-return/

– “States with the highest average gross flipping ROI in Q2 2018 were Louisiana (102.5 percent), Pennsylvania (100.3 percent), Ohio (81.4 percent), Maryland (76.1 percent), and Tennessee (74.9 percent).”

The article gives great information and graphics that pertain to the rehab investment industry. Read the full article here – https://www.attomdata.com/news/market-trends/flipping/home-flipping-report-q2-2018/.

How do you think the rest of 2018 will play out for the real estate industry?