Property flipping wizard Engelo Rumora not in Australia anymore as he tries Kansas City
Engelo Rumora – a 24-year-old property flipper – has left the lucky country to try his luck in the United States property market.
Rumora has a knack for finding undervalued assets that, after major or minor renovation, can be rented for a positive cash flow outcome.
Property Observer reported on a repeatedly graffitied, vandalised, run-down Moree, NSW fibro that Rumora purchased for $15,000 in June last year.
Five months later he sold it for $74,500 – a $40,000 profit.
Rumora and his team of investors have so far purchased 11 properties in Kansas City, Missouri, in the last three months and have re-sold eight, although none of the re-sale prices have yet to be revealed by Rumora or price websites like zillow.com.
They are closing on another three house in the coming weeks, he told Property Observer this week.
Rumora bought a two-bedroom, one-bathroom house at 5720 Brooklyn Avenue Kansas City, Missouri (pictured below).
According to Zillow, it sold in 2008 for $65,000 (all prices in US dollars).
In 2012, it sold at a foreclosure auction for around $8,000 and is currently estimated to be worth over $32,000.
Rumora and his team also purchased a two-bedroom, one-bathroom home located at 6115 South Benton Avenue, Kansas City, Missouri in October last year.
It was listed for $25,000 in 2011, but currently has an estimated value of $34,248.
The team and Rumora gave the house a two-tone exterior paint job, installed hardwood floors, steam cleaned the carpets and painted the walls and ceilings – in a 10-day period.
They have secured a tenant for $500 per month.
The team also bought a three-bedroom, two-bathroom home on 6630 Park Avenue for $11,402 and started renovations in October.
They repainted the interiors, replaced the carpet with polished floorboards, fixed plumping issues and installed kitchen cabinets.
This property will also be rented out for $500 per month.
A two-bedroom, one-bathroom single-family home on 6922 College Avenue was purchased in October last year for $8,125.
It had previously sold in 2004 for $55,962.
The team started the makeover in late October with an internal paint job, plumbing work and electrical work.
The team are hoping for a monthly rental income of $575 to $600.
According to Zillow, it is currently estimated to be worth over $38,000.
The team also bought and revamped a two-bedroom home at 6630 College Avenue that was purchased for $14,500.
They gave the house an internal and external paint job and installed a new furnace.
It is currently tenanted for $500 per month and according to Zillow, is estimated to be valued at $17,867.
Rumora also closed on a property at 5643 Euclid Avenue, Kansas City (pictured below).
The two-bedroom, one-bathroom home was listed for sale last year with offers of $5,500.
Zillow currently estimates it to be worth over $31,000.
“Most investors I speak to always ask me about what area is good, and I would always tell them that the area is only 5% of what it takes to succeed when buying US property,” says Rumora.
“Until you find the right team, don’t invest.”
“It might take years to establish these connections but it will be worth it in the end. Good things take time. Too many people are losing money because they jump into an investment too quickly and over commit too much funds,” he says.
Rumora says capital growth is only a prediction, and to only buy if the numbers in that particular deal make sense.
Rumora also owns a five-bedroom home in Rochester, New York, which he purchased for $41,000 in 2011.
It is currently rented at $900 a month and has a rental yield of 26%.
Rumora’s top tips include investing to suit your end goal and to immerse yourself with property.
“Have smarter people around you, doing the things you can’t,” Rumora says.
