Buying Investment Property

Buying property as an investment is one of the smartest financial decisions a person can make. The trick is to buy the right property for the right price. That can be easier said than done. A turn key property is great is you want to actually live there, but if you are looking to buy a house on the cheap to flip for a profit or possibly rent out then you need look beyond on those picture perfect homes.

Buying Investment Property

A fixer upper is always a better deal than a house that is buyer ready. Finding a house that has potential versus one that is nothing more than a money pit can be a fine line. I’m sure you have heard the expression when a house has “good bones” to it. This means that while not everything appears prim and proper it is a structurally sound house. The foundation isn’t shifting or cracking, the pipes aren’t burst or leaking, and there isn’t an infestation of any kind. It’s one thing to fix up broken cabinets or shag carpeting, it’s another to replace faulty plumbing or remediate black mold. Whatever you do, do not fix up the basement!

A renter will not pay a premium for a finished basement, nor will a potential buyer. That’s one of those nice to have features, not a necessity. As such it is very unlikely that you are going to recoup anything close to the investment cost. This is one of those investments you consider when you plan on living and staying in the home for years to come.

Buying Investment Property

Futurewood composite cladding is a nice addition to the outside of any home. Wood and brick can be a hassle to maintain and upkeep. Wood requires power washing and staining year after year, and brick tends to require washing and re-sanding the joists. I took on this task myself one weekend this past summer, after about 20 total hours I found I did a fairly poor job and had to hire a contractor to come in and finish the work for me anyways. If you plan on becoming a property investor then my number one piece of advice is that you learn how to do the simple fix-it projects yourself. Taking classes on how to hang drywall, put in tile and wood floors, and install drop ceilings can really come in handy. Even tasks that seem simple like painting can be more difficult than you initially think. There are often community classes available on all sorts of DIY projects if you look hard enough.