If you’re considering the thought of dabbling in investment property, you should be aware of some very important elements which could either ruin you early on or set you up for great success, depending on how you react to them. It might sound pretty much straightforward on paper, but is investment property business really without bumps and turns that could catch you by surprise? Of course not, and we’re going to spend the remainder of this article learning how come. If you are interested in getting some valuable tips on how to start off in investment property, keep reading.
Never buy to fix
One of the most important things to keep in mind is that you should never buy to fix. What this means is that if you are planning on buying a property so that you could rent it afterwards, it would be a very bad idea to do so with a property that needs a lot of repairs. “She’s a fixer upper” is not a phrase you’ll hear anyone successful from this side of business ever say, and for good reason. Whatever you end up buying , make sure that you can start conducting your main means of making profit right away.
Be very mindful of location
The state in which a home presents itself is half as important as where it is located. In a worst case scenario, you could repair a house that needs repairs, but you can never move a house that’s in the wrong part of town. Research buy opportunities in the most profitable parts of town and make sure to avoid locations which might tempt you with good prices on good houses. Even thought it looks great, it’s just in the wrong place.
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You’re renting the neighbors too
When you rent a home, you’re not just renting the actually building but also the neighbors. Your tenants are buying more than the house, meaning the whole neighborhood experience which includes the neighbors. Different people have different limits when it comes to what they deem acceptable from the neighbors, but it is your duty as someone that wants to succeed in this business to research the company you’ll be selling. If a property looks great and has a reasonable price, but is right next to a frat house, you know why it has a reasonable price. Make sure that you’re buying something easy to rent from this perspective as well.
Don’t let yourself tricked into prolonging debt
Don’t make the mistake of going into this kind of business while still having debt left over from previous affairs. It is advised to clear all your debt and start in investment property with a clean slate or else you’re kind of asking for it. There are a lot of things that can go south, and you are putting yourself in a very vulnerable spot by investing while still having debt.