Thinking About Purchasing An Investment Property? Here Are Some Tips On How To Avoid Buying A Money Pit.
Investing in a property can be a great way to make money. However, if you don’t do your research before hand you might find yourself in quite the mess. Here are some tips on how to avoid sinking all your money in a pit on an investment property.
Scope Out The Property
Do your research on a property before signing the documents. Have the property inspected to ensure there are no major electrical or plumbing issues that could lead to costly repairs down the road. Do your homework, and research the neighborhood.
You can even go the extra mile and take investment courses or read books to gain knowledge and confidence in your property choices. These all will help you out in the long run. Knowing too much is never a bad thing!
Decide If You’re Going To Rent Or Sell Before Buying The Home
Knowing your plans for the property are a must when investing. This will determine how much extra cost you’ll need to pump into the home before putting it on the market. If you’re buying a home you’re planning on flipping, make wise renovation choices that will help boost the properties value. Consult with contractors, interior designers, and furniture companies on interior furnishings. If the kitchen looks like it just walked out of the 1950’s, gut it and add new appliances. These all are wise decisions that will help boost the properties value.
If this is your first investment property, don’t go overboard. Don’t buy a mansion, and stick with a tiny single family home. This way you’re playing it safe and not digging yourself in a mess. You can always take on a bigger project down the road if this one goes well!
If you’re ready to invest in a property today, give our trained mortgage professionals a call. We are more than happy to assist with any questions you may have, and help you find the perfect loan to fit your needs.