What You should Know about Foreclosure CleanoutsThe first thing you should know is what to expect. While the number of foreclosures represent a small percentage of the real estate market, there are still distressed properties available. The trick is finding one that delivers a solid deal so you can enjoy a healthy return-on-investment.
The most important thing to understand before jumping into the foreclosure market is that these properties were given up by owners who couldn’t afford the payments anymore. In these cases, the house is often poorly maintained – after all, if the owner can’t make the payments, he or she is likely falling behind on paying for regular upkeep as well. In addition, some people who are forced into foreclosure are embittered by their situations and take out their frustrations on their home before the bank repossesses. This often involves removing appliances and fixtures, and sometimes even outright vandalism. —Investopedia.comUnfortunately, there are many first-time property investors who do not realize the scope of flipping a property or renting it out. There are many costs associated with foreclosure rehabs. One example might include popcorn ceiling removal, another could well be plumbing problems. The point is, there are a number of foreclosure cleanout obstacles you could face:
- Furniture. If the foreclosure contains old furniture, you’ll have to dispose of it. This is where a junk removal service comes in handy. Otherwise, you’ll have to haul it to the local dump and pay a fee to be rid of it.
- Appliances. In some instances, the appliances are in good, working condition, and do not need to be replaced. In other circumstances, old appliances must go and here again, you’ll discover there aren’t many options. It’s not that easy to do appliance disposal on your own which can involve a lot of work on your part.
- Electronic waste. It’s common to find electronics left behind in foreclosures and because these contain hazardous materials, must be disposed of according to the law. If you don’t you’re risking being fined; so, it’s best to do it right and get it out of the way.
- Construction debris. The majority of foreclosures need renovation work. And, when you start to remodel, you’ll create a whole lot of construction debris. You’ll need a plan for how to deal with it so you can get the property cleaned up and rehabilitated to move onto the next phase.