Important things to Consider When Searching For an Investment Property
The most important part of property investment is the actual search. You’re dumping your money into the property with hopes of a lucrative return. That return will never happen if you end up with a busted investment. That’s why you should take the property search seriously. Treat it as a job and use these tips during your search.
Don’t Overlook Shabby Investment Properties
Sometimes you can find hidden gems in the most unlikely places. It may be a great up and coming location. The property could also need some work, but is already in a great location. Just be careful and do your research about work the property needs. Get an inspection from an expert. You don’t want to find yourself putting in more money than it’s worth. With this strategy, look for lower-priced properties that need minor repairs.
Search Based on Your Experience Level
If new to property investment, don’t get in over your head. It’s enticing to go for great deals on multiple units, but it also takes a lot of work. You’ll have to get the property ready, fill vacancies, do maintenance, and handle management duties. It’s best to get your feet wet with a single unit or small property. Once you get the experience, you can add more or get that huge complex you’ve been dreaming of.
Try to Negotiate a Deal with Private Owners
Many families have not been able to get the home off their hands. They may be having trouble filling the vacancy on their rental. Oftentimes, they’ve moved and decided to keep the home. With the right offer, you can convince them to get out of that extra mortgage they’ve been paying.
Like with any business, work carefully and strategically. You’ll rarely find low hanging fruit in the property investment business. Searching for investment property takes research and time. Be consistent, yet unconventional in your strategy. If you’re new to the business reach out to the experts at Harkins Commercial Real Estate for help.
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