Oana’s top 3 tips for real estate investors. Episode #282

Todd: Hello. Welcome to Todd Miller TV. I’m here today with Oana who is very experienced with helping investors rent properties and flip properties. So Oana, the first question is we will start with flipping properties because it seems to be very popular.

Oana: Right.

Todd: So give them three tips to make their experience flipping properties profitable.

Oana: OK. So the top three tips are number one which is the number one rule in real estate is location, location, location.

Todd: OK.

Oana: OK. Pick a property that’s in a good location. Look, choose a property that doesn’t back up to a busy road. Maybe it’s not near a smelly enterprise or …

Todd: Pig farm.

Oana: Yes.

Todd: OK.

Oana: Or backs up to a gas station or shopping center, something that is not going to be desirable by most people.

Todd: OK. So, on the flip end you need to sell it to an end user.

Oana: That’s right.

Todd: OK.

Oana: That’s right. And so the second tip is when you’re buying a property to flip, choose a property that just needs cosmetic repairs. Don’t get into a property that needs a new roof or needs cosmetic repairs plus garage doors, appliances, cabinets and other things. It tends to run into big money really, really fast. So look for a property that you can put paint, carpet, maybe some new light fixtures and you’re out of there.

Todd: OK. So minimize repairs.

Oana: Right.

Todd: OK.

Oana: Then the third one is don’t underestimate curb appeal as far as spend some money on the outside. Spend some money on making sure that the front yard looks nice. I’m not necessarily saying to paint the whole exterior of the house but maybe just paint the trim on the house and maybe paint the garage door and the front door, things like that that are going to make your property pop and give a good curb appeal.

There’s no substitute for when you drive to a house and a house looks nice. People are going to get out of their car and go look at your house. When I pull up to your house, the house looks like it’s in disrepair, the inside may be beautiful but I’ve already kind of set in my mind that well, this home is not going to be that great. So make sure that every impression that a potential buyer has is a positive one.

Todd: OK. Good. So now three tips for an investor who’s going to buy a rental property.

Oana: OK. So the first tip is the same thing, location, location, location. Make sure that’s in a place where people want to live where there’s easy access to transportation. There are freeways, shopping, things like that so that you’re not far removed from all of that because let’s face it, most of us don’t want to commute for an hour to work.

Todd: Right.

Oana: The second thing is make sure that the property looks nice. OK? I appreciate that it’s a rental but people still have a lot of choices and again there’s no substitute for that fresh paint smell and for a clean carpet and appliances that work. This is a really big thing. That’s the third thing, appliances.

People love appliances. I joke that if a man walks into a house and the house has a refrigerator with an ice maker in the door, he’s renting the house. That’s all he cares about. But you know what? There’s a lot to be said for that.

Todd: Right.

Oana: Appliances are super important. People who rent property don’t necessarily have their own appliances so having a refrigerator there with an icemaker in the door, having a washer and dryer, those are big deals and people expect that, to be honest with you. So that will make your property rent much faster than somebody who doesn’t have that.

Todd: What if you put appliances, washer, dryer, fridge in a house and then a tenant shows up and says, “Well I already have all that.”

Oana: OK. So then you have some choices. Most investors have more than one property so you can take those appliances and put them on your next property.

Todd: OK.

Oana: Sometimes the tenants don’t even mention it and they go ahead and they choose the nicer of the appliances to use and put the other ones in the garage. So there are things that you can do with that.

Todd: Or you can just tell them, “Hey, the appliances have to stay there at the property. So if you don’t want to use them, put them in a garage somewhere where they won’t get damaged.”

Oana: Right.

Todd: And they just have to store them on the property.

Oana: Absolutely. Yes.

Todd: Good, awesome. Well thank you very much.

Oana: You’re welcome.

Todd: Well that’s the update for today and hope to see you on another video. Thanks.