Should You Buy A “Flipped” House?

Written by Keith Flenniken on August 11, 2014

Through his business, Flenniken Enterprises, Keith Flenniken has built an extensive real estate portfolio with both commercial and residential properties.

With the number of ‘flipped’ properties on the rise, Keith Flenniken offers potential homebuyers advice about what to look for when considering this investment.

Keith Flenniken discusses flipped houses

Keith Flenniken advises homebuyers to look beyond the aesthetics when viewing flipped houses

A flipped home is one that is bought and then resold within six months with the intent of making a profit. Therefore, it is wise to make sure the investor did not cut any corners with defect coverups and shoddy renovation work. According to an article on MarketWatch, it is crucial to hire a home inspector, find out who did the work, check the permits, and look for structural problems.

Hire a Home Inspector, experienced home inspectors will have a better eye than most when it comes to spotting common shortcuts. They will be able to find traces of deferred maintenance that will help homebuyers better understand what they are getting themselves into.

Who Did the Work? Like anything, homebuyers should look into who did the work to ensure they are reputable. If the listing doesn’t name the flipper, the county assessor will provide access to who the deed belonged to last. In addition, Keith Flenniken’s expertise provides him the insight to avoid novices. Larger investment businesses are not afraid to spend money in order to make sure the job is done right, while novices are likely to avoid problems, as they are on a tight budget.

Check Permits If you suspect that major structural work took place, such as altering the layout of the home, check with the local building department that they have the appropriate permits and inspections.

Look for Structural Problems, Fresh coats of paint, New appliances, and High end finishes can make a house appear pristine, while underlying issues may turn the house into a money pit down the road. If you suspect structural issues, consider hiring a structural engineer to inspect the property, as the foundation of a home can cost thousands to repair.

To learn more about Keith Flennike, visit: http://keithflenniken.tumblr.com/ or http://expertfile.com/experts/keith.flenniken

How to Accurately Price your House

Written by Keith Flenniken on June 29, 2014

Keith Flenniken is an expert in real estate and even founded his own company, Flenniken Enterprises. He and his team have a knack for transforming undervalued properties and selling them for a profit. A key to success in the industry is knowing how to accurately price a property. These and other tips can be accessed through his personal tumblr page.

Naturally, home sellers are looking to sell their properties for the highest amount possible- and quickly. According to an article on realestate.msn.com, there are ten things to remember to price your house right.

1. Comps are perhaps the most important thing to consider when pricing your home. This means looking at comparable neighborhood homes that have recently sold. Taking into account aspects such as location, curb appeal, and renovations, can help you compare your home and more accurately price it. Additionally, consider local market conditions, as they can affect pricing.

2. Sold comps should receive the most attention. Unless the buyer pays cash or waives an appraisal contingency, your sales price will require an appraisal. Most often, the appraisal is based on the sales price of sold comps. It is not necessary to pay for an appraisal, however, as your retail agent should be able to take care of it.

3. Square footage is not necessarily a decisive factor when pricing a home. While it is beneficial when comparing apartments or condominiums in a complex, different homes will have varying floor plans that make square footage irrelevant.

4. Dont be swayed to price your home higher due to irrelevant factors. These factors include:

Price you paid for the home
Amount you want to net
Amount spent on repairs or improvements
The worth of your house five or more years ago

5. Under or over-pricing your house may be counter productive. Underpricing hoping for a bidding war is risky and may result in a price lower than expected. Overpricing can turn into a price reduction that may cause the property to look tainted to potential buyers.

Find more tips and information on Keith Flenniken here: http://www.pinterest.com/keithflenniken/

The Pros and Cons of Granite Countertops

Written by Keith Flenniken on May 22, 2014

Keith Flenniken advises that you weigh the pros and cons of granite prior to making your purchase.

Keith Flenniken is the founder of a successful real estate business, Flenniken Enterprises. His portfolio boasts an impressive range of properties. Some of these commercial, single family, and multi-family homes can be found on his Pinterest page. To be successful in the industry, Keith Flenniken relies on a team of talented artisans that are able to bring worth to something undervalued. An eye for design is an important element that can help others appreciate the space as well.

When remodeling a kitchen, potential home-buyers have a tendency to look for a renovated, modern kitchen. Granite countertops are an ideal option for an instant, luxurious feel, but according to an article on ehow.com, there are many pros and cons that should be considered first.

Pros

Aesthetically pleasing- Granite countertops are beautiful and come in a variety of colors to match any decor. In addition, since granite is natural, no two pieces are alike, ensuring your product is unique.
Durable- Unlike other countertops, granite is scratch resistant and will not chip easily. Furthermore, it is heat resistant so hot pans can be placed directly on the countertops without damaging the surface.
Adds Value- As granite countertops are ranked favorably among potential home buyers, they are a huge selling point and will add more value to your home.

Cons

Expensive- Granite is an expensive material and often, must be custom made to fit your pre-existing counter tops.
Difficult to Repair- Although it is very resistant to chips, if the granite does chip, repairs will not be easy.
Reseal Regularly- Granite countertops are prone to staining, but with proper upkeep, can be avoided. Resealing the countertops at least once a year can prevent the granite from absorbing stains.
Difficult Installation- Granite is a very heavy product and therefore is difficult to install on your own. Hiring someone to install the countertops results in an additional expense.

Investing in a Flip Property

Written by Keith Flenniken on May 16, 2014

In this blog, Keith Flenniken shares tips on investing in flip properties.

House flipping has become a widespread practice among investors, as the opportunity to make a profit is high. According to RealtyTrac.com, investors flipped more than 100,000 homes in the first half of the year alone, making an average of $30,000 per flip. Experts warn to tread lightly, however, as many investors who are in a rush to make a profit overlook the basics and in turn, end up failing. Keith Flenniken, owner of the successful real estate business Flenniken Enterprises, knows the keys to success, as well as common pitfalls to avoid when flipping houses.

Look for potential

Successful flippers are able to look beyond deteriorated properties to spot potential. Outdated kitchens, floor plans, and other factors that don’t appeal to the conventional home buyer pose as opportunities for house flippers to make a profit.

Calculations

Real estate is an expensive and complicated business. To earn a profit, the after repair value (ARV) must be greater than the original purchase price and repair costs. Therefore, buyers must accurately predict repair costs beforehand, as well as predict any unforeseen complications. Experienced flippers factor in a percentage for miscellaneous costs in order to avoid exceeding the budget.

Design Elements

Flippers need to be conservative when selecting design elements, as they must appeal to a wide range of potential buyers. In addition, splurging on high quality cabinets or a wall mounted TV adds to the value of the home and will help it sell more quickly.

Hire a team

To be successful in the industry, flippers need to understand both the cosmetic and fundamental aspects of the project. They aren’t afraid to bring in experts to ensure the job runs smoothly, even if that means spending more money than anticipated.

Practice Patience

Expert flippers like Keith Flenniken understand that buying and selling houses takes time and sometimes, the profit is slim. Exercise patience when purchasing a property, as well as when putting the property on the market. Professionals urge rookie flippers to wait until the house is completely finished and staged with furniture before putting it on the market.

US Housing Market Hits a Rut

Written by Keith Flenniken on May 6, 2014

House for Sale In some high-demand regions, Keith Flenniken noticed that housing prices were rising so dramatically that there was sure to be a decline in sales. However, these price increases caused certain housing markets to experience a temporary slowdown, causing the trend to be deeper and more widespread than expected. According to a recent report, monthly home sales dropped a full 13.3% year over year. A report from the National Association of Realtors also mentioned that last month, the sales of new single-family homes hit their lowest point since July of 2013. In addition to a slowdown in overall home sales, the average sales price for purchased homes was exceptionally high. Median sales prices were the highest yet recorded, resting at an average of $290,000.

This difficult combination makes it a tough buyer’s market, especially for first time buyers. Since the overall sustainability of the housing market relies heavily on first time buyers, the market risks stagnation.

Fortunately, low-priced houses still seem to be moving. The same article noted that only 49% of the homes on the low end of the market were on sale two months prior, in comparison to 53% of mid-range homes and 62% of homes in the highest price tier. Data also suggests that the unhealthy market is regionally segmented. Although this is common, it seems especially pronounced. In the Northeast, sales of single family homes are the strongest, while sales are lagging more so in the South, West Coast, and Midwest.

Some blame the sluggish housing market on the prolonged winter, but Keith Flenniken and other real estate investors have high hopes that the downturn will be only temporary. The market will eventually stabilize, and even though all real estate is local, it is likely that every region will see the dip that some are currently in.

Read more about the U.S. housing market here:

http://www.biggerpockets.com/renewsblog/2014/04/28/u-s-housing-market-hits-rut/

7 Steps for Buying a Rental Property

Written by Keith Flenniken on April 9, 2014

Keith Flenniken has purchased a number of rental properties, including one at 57 West Broadway (above) in Derry, NH.

Keith Flenniken currently runs his own successful real estate business, Flenniken Enterprises. His vast portfolio encompasses a number of commercial and residential properties. Keith Flenniken provides an easy seven step approach for those interested in purchasing a rental property.

Get Pre-Approved

It is important to start with this time saving step to make sure you can afford the property. You will need a pre-approved letter from the bank or other lender, who will help you figure out exactly how much you need.

Contact a Real Estate Agent

Shop around for an agent who will work to find you the perfect deal. Read reviews and get recommendations from others before picking just anyone; you’ll be spending a lot of time with one another!

Start Looking

Spend some time with your real estate agent looking at potential properties. The more you look, the more likely you will find one suited for you.

Crunch the Numbers

Look at all the facts and figures of a property, including management, repairs, and vacancy. Property analysis tools are available to help analyze profitability.

Make an Offer

If you are satisfied with the estimated profitability of a property, as calculated in step 5, negotiate with the seller. Although you may go back and forth, do not overpay; even if it means losing the property.

Hire a Property Inspector

It is important to make sure you are not walking into any hidden surprises. A property inspector will survey the entire property for damages. If it is in worse condition than you thought, renegotiate with the seller. If they refuse, don’t be afraid to walk away.

Close the Property

When you are ready to close on the deal, all you need to do is show up to the Title Company and they will do the rest. The title and deed are recorded to the county and then you will be the proud owner of a new property!

For more real estate investment tips from Keith Flenniken, visit his Slideshare profile or learn more about him in his bio on Weebly: keithflenniken.weebly.com

Buying Multi-Family Properties

Written by Keith Flenniken on March 25, 2014

In this blog, Keith Flenniken shares tips for investing in multi-family real estate properties, such as his four-unit property at 15 Mt. Pleasant St. (above).

Keith Flenniken is a real estate investor who owns Flenniken Enterprises. His portfolio of New Hampshire homes includes many multi-family properties, which offer unique benefits over single-family homes.

Multi-family homes have not historically attracted much investment interest as single-family homes but are now growing in popularity. Younger first-time buyers are especially enthusiastic about multi-family units, in many cases choosing to live in one unit while renting out the other(s) to generate additional income. This can make it easier to find a lender for the purchase price of a multi-family property, as lenders often factor in some portion of anticipated rental income when calculating a prospective buyer’s total income. Here are a few tips for investors who are considering buying a multi-family property:

Decide what type of multi-family property to purchase. Buyers should ask themselves whether they plan to live in this property, as this will help determine space and location requirements.

Evaluate the local market. In some areas, duplex-style rentals are more popular while others see higher market value for condominium style homes. Buyers who gain a better understanding of what is in demand in their market will be better equipped to identify properties with investment potential.

Research size availability and preference. Investors should also research their market to figure out what types of units are currently in demand. Young professionals might prefer one-bedroom units while a newly married couple could prefer a two-bedroom unit for when they want to have kids.

The more units the better. While a property with five apartments will have a higher asking price than a property with only two, it also helps investors protect themselves from loss. Assume that at some point there will be months when property units are empty and this amounts to lost income. Having one of two units vacant hits an owner’s wallet a lot more than having only one of five vacant.

For more real estate investing tips from Keith Flenniken, follow him on Twitter or learn more about his real estate portfolio by viewing his about.me page: about.me/keithflenniken‎

4 Tips for Evaluating Investment Properties

Written by Keith Flenniken on March 18, 2014

Keith Flenniken shares tips for identifying properties with good investment potential.

Keith Flenniken is the owner of Flenniken Enterprises, a real estate investment firm with a diverse portfolio of residences and commercial properties. He recognizes that spotting a good investment property is not easy. Here are four tips he recommends for new real estate investors who are looking for a good property to flip:

Look For Structural Problems

All problems will cost money to repair, but some can be fixed inexpensively. An aesthetically displeasing issue like a broken window or peeling paint has a quick fix, but structural problems are a completely different animal. A nice looking property with structural problems does not have anywhere near as much value as a shabby looking property with no structural issues. Investors who are just starting out should leave properties with structural defects to the more experienced investors.

Consider the Location

Location plays a major part in a property’s value, with the neighborhood a home is located in having a major effect on its value. Aim for the worst looking property in the best looking neighborhood, as this property will have more upside than a nice looking property in a lesser neighborhood.

Evaluate Nearby Features

Proximity to amenities and necessities will also impact a property’s value. Homes that are close to a factory, loud highway, or traffic-heavy attraction will always be less desirable than a home near the beach or lake. Stay away from features that will cause homes to sit on the market for an extended period.

Look for Strong School Districts

Most housing flips are sold to first time homebuyers, and real estate investors who plan to rent will be targeting couples and families as well. A house that is located in a strong school strict will be worth more than a home in a less reputable district, so once again aim for a fixer-upper in a good school district instead of a nicer home in a less desirable school district.

For more real estate investing tips from Keith Flenniken, view his pins on Pinterest or learn more about him on Viadeo: us.viadeo.com/en/profile/keith.flenniken‎

Real Estate Investing: Best Practices

Written by Keith Flenniken on March 7, 2014

Keith Flenniken, owner of Flenniken Enterprises, shares best practices for real estate investing.

Keith Flenniken is the owner of Flenniken Enterprises, a real estate investment firm with an extensive portfolio of residential and commercial properties in New Hampshire. He recognizes that there are a few best practices individuals who are interested in getting into real estate investing should follow before taking the leap.

Prospective real estate investors should begin by compiling as much information and advice as possible for their target markets. Property ads and listings can provide a considerable data on the types of properties available in the market and the prices their owners are looking for. In time, investors will begin to be able to identify good deals and bad deals by taking note of discrepancies in property price and quality.

Jumping in too soon could cause investors to eat up all of their investment cash and reserve funds. There are a number of books and websites investors can turn to for help making the right decision. Investors who arm themselves with knowledge early on will reduce the possibility of making critical errors. Additionally, a strong support system made of mentors, attorneys, and/or accountants will also help investors adjust to their specific market.

Hiring a realtor or real estate agent is a good way to obtain guidance during the process, but only if this individual is someone the investor can trust. This individual should be willing to share market knowledge and put the investor’s interests above all else. A good agent will even be able to help negotiate prices so that investors are better positioned to turn new properties into money-making assets.

Finally, all investors must be sure to set a budget early on in the process. An understanding of what an investor can afford to invest, as well as how much he or she will be able to secure in a loan from the bank, will keep them from buying more than they can afford.

Learn more about Keith Flenniken on his Expertfile profile or read his bio on VisualCV: http://www.visualcv.com/keithflenniken