What To Look For When Buying Damaged Rental Homes
Something to think about when you're looking at damaged
homes. If these homes were rentals, I would like you to seriously think
about what I am about to say. Most tenants have no desire to maintain
any property that they don't own and will not benefit from. I have
worked on plenty of rental homes that suffer from neglect and zero
maintenance. These homes usually have more problems than you could ever
imagine.
If you're thinking about purchasing a home that was a rental, spend some
extra time, inspecting the home for other problems. Most landlords,
purchase homes to rent for one reason, "To Make Money," and they hire
the cheapest handyman, who install the cheapest products, in order to
save a couple of dollars.
This is extremely common among real estate professionals who manage
property or own their own rental units. You're probably wondering where
I got this information from, I use to fix up rental homes and have
limited experience dealing with real estate professionals and property
managers, because early on in my career, they tried to take advantage of
a young contractor who was just starting out in the business.
Most of these contractors are either young or inexperienced and will let
the property owners abuse them. They don't know any better, most of the
time. The property owners will promise them more work if they can keep
their prices, "reasonable." In other words, cheap. When the contractors
or handyman,
finally realize that they're being taken advantage of, or not getting
paid on time. Most of them will look at it as a lesson learned and quit,
while the property owner has already lined up there next victim.
Not all rental homes are a nightmare. Not all real estate professionals
operate in this manner. But most property management professionals do.
Their business is about making money and in order for them to keep their
prices reasonable, they have to higher low priced handyman who usually
lack the much-needed experience to do the
repairs properly.
You could end up buying a home that would require the replacement of
these inferior building products, within a short period of time. Beware
of realtors who are selling their own
rental property, especially those who are trying to hurry you a long and
telling you not to worry about this or that, it's not a big deal. Once
you buy the house, it could be a bigger deal and they will be out of the
picture.