Buying Investment Property
Navigating the field of real estate investments can be overwhelming but profitable if you have the right formula. Start with a professional agent with experience in the local market. Then decide whether you are purchasing the property to renovate and flip for a profit, or to use for stable rental income and long-term investment. Your choice will affect the process and budget significantly.
To renovate and “flip” a property, determine the minimum investment needed to make the home distinctive in the market. This includes adding features that may be relevant to that neighborhood and the target buyer. Adding square footage or changing the existing floor plan are considered major renovations, while some properties may benefit from a minor change of paint, fixtures or flooring. Do not overlook or underestimate the basics of roofing, plumbing, electricity, etc. as these items could be costly. My biggest advice to a “flipper” is to avoid the “vanilla” renovation. Basic brown carpet, and tile mean nothing in today’s competitive market. Tour comparable homes in the area to determine what will make the property stand out to potential buyers. Consider professional contractors for inspections, estimates and design, unless you have specific experience or talents in these areas.
Regardless of investment type, preparing a realistic budget is one of the most important elements to ensuring a profit and a quick sale or rental. After renovation costs, every home needs continued maintenance and repairs, in addition to carrying costs while attempting to sell or rent the home.
If you are ready to purchase investment property, I’d like to offer my unique experience as an individual investor combined with my real estate market knowledge to assist you in identifying potential undervalued properties.
