“Don’t put lipstick on a PIG”

Hey guys,

I hope your well.

Please see below a blog post I wrote for my personal website and other online outlets.

Thanks and have a great day.

Renovating with delayed gratification in mind

Time and time again, I’ve come across many real estate investors who cut costs on hidden repairs with older properties that have potential to become high cashflowing investments. A cheap and temporary fix might look attractive at first glance, but will definitely result in costing you more in the long run, regardless if the property is a buy-and-hold or a flip deal to an end buyer.

When renovating properties in lower income areas, it is crucial to insulate the roof and walls. This will in return lower the tenant’s monthly gas bill by a couple hundred dollars. Most tenants in lower socioeconomic areas are hard pressed for funds and should not be given any reasons or excuses to short the monthly rent and pay for other unnecessary expenses.

Another “hidden” item that causes landlord grief and tenant disturbance is a problem with the plumbing. I highly recommend that every real estate investor contracts a competent and trustworthy plumber who has years of experience working on the properties and in the areas of interest. With this experience he should be able to predict all future maintenance issues and eliminate most of them upfront during the renovation process.

By implementing these strategies, the estimated or promised numbers on paper when evaluating the purchase- will be more accurate and achievable. There are too many shady operators that offer “amazing” numbers for these pig properties with only the very basic cosmetic work being completed (i.e. paint and carpet). By putting lipstick on a pig they smudge the prospect buyers and tenants eyes in paying top dollar for the purchase and rent. Making it a loose/loose situation. My experience has taught me that within 3-6 months of ownership issues begin arising and it becomes a never-ending cycle of problems. Most of the time resulting with that particular property becoming vacant and vandalized.

Utilizing the above-mentioned strategies up front makes it a win/win/win scenario for all interested parties. The buy-and-hold investor will save time and money without experiencing grief, the tenant will get a clean, renovated and efficient home and the flip investor will gain a good reputation and most likely repeat business for a very long time.

It takes a lifetime to build a reputation, and only 5 minutes to loose one.

Thanks for reading
– Oink, Oink.

• This topic was modified 10 years, 7 months ago by  EngeloRumora.