He confirmed my assumption that the estimates on Zillow, etc. are pretty much junk, that they will regularly be at a minimum 5% off, sometimes much more, and that what he has seen in the past is that new investors have based their numbers (purchase price, rehab budget, etc.) on these inaccurate numbers and what started off looking like a great deal, turned out to be a bad deal for them after the actual comps,  inspection, and assessments. 

The $50,000 renovation budget presented a clear opportunity to add value.

Calculate your budget, including how much you can afford to invest, and consider factors like financing, property management, and potential vacancy rates.

I check the inspection and picture, and create a range of estimates for rehab budget, for example 25k-50k or 50k-75k based on which house that needs to be remodelled.

The $35,619 renovation budget presented a clear opportunity to add value.

These are some of the ways the clients could be affected by property managers who are not prepared: Extended VacanciesInadequate marketing strategies and tenant screening processes can result in prolonged vacancy periods, translating into substantial lost rental income.High tenant turnover due to poor resident relations further exacerbates vacancy losses.Inadequate Maintenance and RepairsNeglecting preventive maintenance and delaying necessary repairs can lead to accelerated property deterioration and higher long-term repair costs.This can also negatively impact tenant satisfaction, contributing to higher turnover rates.Legal and Compliance IssuesLack of knowledge or disregard for landlord-tenant laws and regulations can expose investors to costly legal disputes and penalties.Failure to properly handle security deposits, evictions, or fair housing practices can result in significant financial liabilities.Ineffective Financial ManagementInaccurate budgeting, expense tracking, and financial reporting can lead to uninformed decision-making and missed opportunities for cost savings.Failure to optimize tax strategies and leverage available deductions can further reduce net returns.Diminished Property ValueInadequate maintenance, high vacancy rates, and poor tenant screening can negatively impact a property’s perceived value and appreciation potential.This can significantly affect the long-term return on investment when it comes time to sell the asset.While a 10% management fee may seem reasonable for a well-performing property manager, the cumulative impact of mismanagement can quickly escalate the effective cost to investors, potentially outweighing any perceived savings on the management fee itself.

The $67,150 renovation budget presented a clear opportunity to add value.

Hello, has anyone ever turned their pole barn on their primary residence into a wedding venue?

The $40,000 renovation budget presented a clear opportunity to add value.

The minimal $2,000 renovation budget presented a low-risk opportunity.