Smart investors tap into every resource they have to glean property investment knowledge. But, I’ll let you in on a little secret: Even the DIY landlords who claim they’ve built all of their success on their own had help. We’ve all imagined it - becoming a successful do-it-yourself property investor with little to no help. If you plan to rent the home, you can calculate that income into the monthly expenses to determine the property’s ROI and determine whether or not the property is the right investment for you. And this isn’t an exhaustive list! If you end up buying a property that you ultimately can’t afford, you will constantly be worrying about whether you can sustain your investment.īefore ever making an offer, make a list of all the monthly expenses associated with a potential property. But on top of a mortgage lies maintenance costs, appliance and yard upkeep, and HOA fees, along with property taxes and homeowners insurance. In a dream world, our only investment expense would be the mortgage. Real estate agents (or your heart) may try to persuade you to buy a property not in line with your investment strategy, but remember to stick to your intended goals. As I already mentioned, the property you purchase should align with your investment goals. Cracks in walls, damp basements and signs of pests are red flags that indicate the home will need maintenance and may require more money than you hope to spend. Always keep an eye out for major repairs or renovations when inspecting a property. Avoid properties that require extensive maintenance.Additionally, don’t forget to research local rent prices to know what tenants might be willing to pay. For example, if you desire to rent to families, look for a property in a good school district with a safe neighborhood and multiple bedrooms. Research what tenants will be looking for in a property and know the type of tenant you wish to rent to. Both scenarios could leave you with the wrong property. Anxious buying can lead to overspending, and emotional attachment can cause you to buy with your heart rather than your head. While buying the wrong property can be a symptom of the previously mentioned mistakes, I think it’s one of the biggest mistakes you could make as an investor. Discover what amenities tenants most desire in each location you consider investing.ĭoing your due diligence in your research will ensure you make well-informed property investment decisions.Do an in-depth inspection of each property’s condition.Research the location pay extra attention to crime rates and issues like flood zones.Learn local landlord-tenant laws and zoning requirements as well as fair housing laws - all of which could affect your investment goals.Check out local market trends, and be aware of potential housing bubbles that could burst.Here are steps to get your research started: These same research methods should be applied to real estate investment but should be twice as meticulous. When buying a car or even just a television, people often compare different models and prices plus, they ask a lot of revealing questions to determine if the purchase is worth the money. There are many investment strategies to consider, but one of the best ways to develop your goals is to determine what your investment property will help you achieve.
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