As housing prices keep falling, many people are considering getting into the property market like never before. If you are looking for an investment property, now is certainly the time to strongly consider your options. However, before you get in over your head, there are a few things you need to know about foreclosed property. First, it is a good idea to figure out how you plan to use the property. Since the rental market is booming right now, we’re going to focus on that for this particular article. Most of the tips will also apply if you are planning on purchasing a property for resale. However, you should be prepared to wait several years before seeing a return.
1. What kind of renters are you looking for?
This makes a huge difference when it comes to purchasing property. Different types of renters will have different needs and risks change significantly. For example, renting to a family is generally safer than renting to a biker gang, but in some ways, the family could do more damage. Every tenant is a potential risk but you’ll really need to think long and hard about your intended market.
The type of renter you select will have a bearing on many aspects of the property. For example, families will need a yard, and will need to be a in specific location. Other renters may want a deck, or other features that make the home stand out. By focusing first on the type of renter you’re looking for, you can save a lot of time.
2. Where is the property located?
Just any property will not do for a rental. For example, if you want to rent to a family, it will need to be located near good schools. If you want to rent to someone that is on the career track, it helps to have the property located close to a metropolitan area, or at the very least, close to transportation. Consider the location of the property very carefully before making your move on any property.
3. What makes the property special?
If you want to charge more rent to make more money on your investment, the property is going to need to have a feature that makes it worthwhile. How big is the yard? Does it have something that makes it truly special? These are things that renters will be looking for, and you can charge a higher price for that rent if your property has it.
4. What kind of shape is the property in?
We always recommend actually visiting the property before you buy it and getting an inspection. There is no point in investing in a property only to find out later that you’ll have to spend more money on it. If you’re looking for a fixer upper great, but if not, you will need a property that is ready to go and requires a minimum of repairs or painting.
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Originally posted 2008-08-18 05:12:18. Republished by Blog Post Promoter
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