The following tips may offer some ideas that have not have been considered by real estate investors interested in residential properties.
- Flip a property or use it for rental income?
This will help you determine what you are looking for in a property and the type of improvements that you make. For example, the nicer finishes and upgrades that you make may be helpful for a flip, but would be considered unnecessary for a rental property.
- Hire a full-time, responsive agent
You'll need an agent to search daily for properties for you. These types of properties sell fast, so you'll likely need to make an offer quickly. Find an agent who has experience in determining whether the cost of the property and needed renovations will be profitable at the new sale price or with the rental income.
- Know your skill level
Do you want to do the electrical, plumbing and other major work yourself or do you need to hire contractors? Calculate into your budget the cost of using a contractor.
- Have your financing in order
When you find a property, you'll want to submit an offer quickly, and you'll need to be a qualified buyer to get your offer accepted. Find current mortgage rates here.
- Major fixer upper or minor updates
Major fixer uppers can sometimes be purchased at rock bottom prices, but you're in for a lot of work. The upside may be that you'll make a nice profit. A home that only needs minor updates can be turned around quickly and contractors may be unnecessary.
- View the property before purchasing
Despite what you see on TV, it is never a good idea to make an offer on a home that you haven't had a chance to walk through and inspect.
- Check out the neighborhood and don't over-build
If you over-build, you might not get all the profit out of the home. The maximum selling price will also be partly determined by the neighborhood.
Ron was informed and handled everything I asked of him well. He was proactive without my asking and was very helpful in dealing with a very non-responsive lender...We were on the same page all the way through and I could not have been happier with my first experience using him. I have made many purchases over the years and Ron was as professional as anyone.