Posted on: 20 April 2016
For those who are wishing to purchase investment property, a lot of thought must be taken into account. Consider the following when you are ready to move forward with purchasing investment property:
Research The Area
If the potential property is not in a familiar area, it is crucial to get to know everything possible about the town. Many investors are unaware that there could be a significant difference from places they are used to. By taking a drive around the area, it becomes easier to envision having a tenant live there. It also provides a way to boost the listing when the home is ready for tenants. Mention items such as great shopping options, the availability of a town center, and access to public transportation.
Find Out Rent Rates In The Area
In order to maximize the investment, it is important to know what the current market rates are before purchasing it. There is little sense in charging a rent that is too low for the market. A Realtor can assist with this, as he or she is likely familiar with the town and can advise on the proper rent amount based on the home.
Check Out Many Properties
One major mistake buyers make is not checking out many properties before buying. While one house can seem like the perfect rental home, there is always the potential of something better that can yield a higher return. Have the Realtor show you a variety of options before making a final decision.
Get A Total Cost Breakdown
While tax expenses are to be expected, it is important to find out any and all additional expenses that may come along with a particular purchase. Realtors can assist with obtaining estimates for insurance and utility costs. While this process is often fairly simple for commercial property, it can be more difficult for residential. It may be necessary to obtain an estimate of costs from the seller, which he or she may happily provide in order to make a sale.
Know How The Property Is Zoned
For an investor, it is crucial to understand how the area is zoned in order to fully maximize the potential. For instance, can it be expanded or resized? Can it be converted to a different use altogether? In order to fully develop the investment, these questions must be answered. It is also necessary to know the town's classification of the property and any limitations in place.
Purchasing an investment property can be exciting, but it can also be a difficult process. With the help of Realtors, the process can be much less stressful for the buyer. He or she is also familiar with the territory and can provide a wealth of knowledge, especially for those who know little about the area. The assistance of a real estate attorney may also be helpful, especially if zoning is a concern. Once you find the right place, consider a professional rental management company to help you keep it occupied.Share