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Showed one in Knightdale a few weeks ago.
Used kitchen cabinets they painted.
Giveaways:
>Extra outlet hole over the range where they installled the microwave.
>Extra screw holes in the other cabinets from where they were hung on the wall in the home from which they were removed.
>Mismatched cabinets, so the base cabs weren't neatly continuous.
>One drawer base with dovetailed plywood drawer sides. One drawer base with particle board stapled drawer boxes.
>Ran out of cabinets, so there was just a void to the right of the sink.
Popped into the crawlspace, and it had never been cleaned out for a couple of decades. Muddy dirt, no plastic. Junk strewn around.
No septic permit, and no evidence of any septic maintenance.
Showed another one in November, with the flipper present.
Saw the UST, Underground Storage Tank filler cap in the yard, with gravel up to the cap.
Me: "Looks like there was an oild tank here. Was that taken care of?"
Flipper: "Oh, you don't have to worry about that. No one is using it."
Told the buyers, "Let's get out of here."
Exactly what I’m seeing in the Raleigh market. I guess when enough people are desperate to buy, some are willing to accept this sort of flip. I’d rather find a fixer and live in a rental while I do a true quality renovation rather than paying an overinflated cost for a subpar one.
Exactly what I’m seeing in the Raleigh market. I guess when enough people are desperate to buy, some are willing to accept this sort of flip. I’d rather find a fixer and live in a rental while I do a true quality renovation rather than paying an overinflated cost for a subpar one.
Right.
The tough thing is, folks who fall for this garbage probably aren't able to describe or manage a quality renovation.
Right.
The tough thing is, folks who fall for this garbage probably aren't able to describe or manage a quality renovation.
That’s true. And because they can’t, they’re buying subpar flips at quality renovation SF prices and in doing so contributing to prices rising precipitously. I hope I find my pig soon!
This. I’d rather buy the pig and control the quality of lipstick applied. We’re looking to buy in Raleigh and I just saw one where a flipper bought a property 2 months ago, applied builder grade (at best) lipstick and now has it listed for 77% more than they paid. And some idiot will fall for it because it looks “shiny and new”.
To be fair, did you see it before and know what they may have done structurally? I am about finished with one that has nice lipstick like paint, floors, doors, knobs, and lighting, but I also replaced some plumbing, the panel, the roof, the hvac, new siding, cleared landscaping and trees that had been neglected for years (cost 9000 just for the clearing), replaced the water damaged ceiling, replaced 3 cracked rafters, new garage doors, completely gutted and renovated the 1970's bathrooms (that were in bad shape and dated), and gutted and renovated the kitchen. Also had all the smaller items found on the home inspection completed.
Someone may be on here and say I sold it for twice what I paid and rant about the fact flippers are ruining the market. However, the fact is I spent more than I even wanted to on the purchase price knowing how much it needed. The condition was so bad the first insurance company wouldn't insure it when the adjustor saw it. They dropped it and I had to scramble to find someone that would. The home wouldn't have even been eligible for a rehab loan the renovations were so extensive.
Not all flippers are ignore problems and hope an inspector misses the issues. If I had to guess from what I've seen it's about 50-75 of the flippers do good, throrough work and the minority do crap work. Those that do the crap work are usually amateur DIY guys learning as they go.
To be fair, did you see it before and know what they may have done structurally? I am about finished with one that has nice lipstick like paint, floors, doors, knobs, and lighting, but I also replaced some plumbing, the panel, the roof, the hvac, new siding, cleared landscaping and trees that had been neglected for years (cost 9000 just for the clearing), replaced the water damaged ceiling, replaced 3 cracked rafters, new garage doors, completely gutted and renovated the 1970's bathrooms (that were in bad shape and dated), and gutted and renovated the kitchen. Also had all the smaller items found on the home inspection completed.
Someone may be on here and say I sold it for twice what I paid and rant about the fact flippers are ruining the market. However, the fact is I spent more than I even wanted to on the purchase price knowing how much it needed. The condition was so bad the first insurance company wouldn't insure it when the adjustor saw it. They dropped it and I had to scramble to find someone that would. The home wouldn't have even been eligible for a rehab loan the renovations were so extensive.
Not all flippers are ignore problems and hope an inspector misses the issues. If I had to guess from what I've seen it's about 50-75 of the flippers do good, throrough work and the minority do crap work. Those that do the crap work are usually amateur DIY guys learning as they go.
Not all flippers are created equal. But if they’d replaced mechanicals or the roof, it’d be in the listing. My agent saw it before and after and builder grade cosmetic upgrades plus paint was all that was done. That’s not worth the huge price increase. She also said the very long driveway was crumbling and the wood on the sizable deck was split in many places and that both needed to be replaced. Based on that assessment, my take is they did the cheap cosmetic upgrades and specifically avoided the more costly ones.
-I wouldn’t categorically say investors are generally ruining the market. There are some markets particularly in the Sunbelt where investors are buying up a ridiculously high share of inventory, but in other markets they are far less prevalent.
-There is a difference between a flipping investor and a slumlord-type investor and I don’t think they should be placed in the same category.
-Too many investors buying speculatively can and should be somewhat concerning. They tend to be the last ones in and the first ones to bail if things go south. In other words, I don’t know that it’s a good thing if corporations or individuals make up a significant share of property ownership vis a vis people who buy homes to actually live in.
Investors are definitely ruining at least part of my local market. I'm in a beach town and our city stopped prohibiting vacation rentals in off-beach properties a couple of years ago. Investors have since been furiously buying every small home, duplex and triplex they can get their hands on and turning them into AirBnB rentals. A duplex unit that used to rent for $1500 a month can now get $2000 per week. With this shift, lower paid workers who used to rent in these duplexes now have nowhere to rent and must move off the island to find accommodation and are forced to commute.
Investors are definitely ruining at least part of my local market. I'm in a beach town and our city stopped prohibiting vacation rentals in off-beach properties a couple of years ago. Investors have since been furiously buying every small home, duplex and triplex they can get their hands on and turning them into AirBnB rentals. A duplex unit that used to rent for $1500 a month can now get $2000 per week. With this shift, lower paid workers who used to rent in these duplexes now have nowhere to rent and must move off the island to find accommodation and are forced to commute.
I sympathize with your island situation but the blame falls squarely on the politicians’ that changed the zoning laws and the residents who elected those politicians.
When that started happening in my town, the zoning rules changed to become stricter, no rentals less than 6 months in all the towns around me. In this case it was more about quality of life than subpar housing. No one wants to live near a party house, no matter how nice it is.
Some builders who were counting on an income from airb&b were left holding the bag.
To blame the investor is misplaced imo.
I sympathize with your island situation but the blame falls squarely on the politicians’ that changed the zoning laws and the residents who elected those politicians.
When that started happening in my town, the zoning rules changed to become stricter, no rentals less than 6 months in all the towns around me. In this case it was more about quality of life than subpar housing. No one wants to live near a party house, no matter how nice it is.
Some builders who were counting on an income from airb&b were left holding the bag.
To blame the investor is misplaced imo.
Agree. I don't blame the investors directly. They are just taking advantage of a situation fostered by City government's inaction. Local business owners profit from increased tourist traffic and they have more sway with the City fathers than a server at a coffee shop who can't find a cheap apartment nearby.
This may come as a surprise but there have been instances of politicians not honoring their election promises.
What would you have done with the dilapidated homes that need major renovations, and are eyesores for a whole neighborhood?
I would avoid them and let them sit. But then again I'm not a flipper. I wouldn't take the risk and cut corners to maybe turn a profit. Though many do it the right way and do profit which is the silver lining here. It's the city's problem. There are entire neighborhoods like this in inner cities. The areas are dangerous but the prices are reasonable. In my hometown outside Philly you could buy a 100,000 old row home, which is in poor condition, but still cheap enough to buy and renovate.
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