Investment Properties
Tips to invest in real estate with success!
Its a great time to buy Real Estate! Interest rates are very good and home prices are down. So if you are considering investing in a house other than your primary residence, here are a few thoughts.
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Invest in someting you know and you are comfortable with.
For example if you like to do repair work then buy fixer-uppers. You might like foreclosure properties or small starter homes or even condos. Pick what type of property that you feel comfortable with. -
Check property values.
Do your homework! Look at both the value of the property compared to comparable sales and look at the rental return. Both are very important. Make sure that you are very careful estimating the current rental rate. -
Understand how taxes will effect your investment.
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Do an inspection on the property.
This is very important! Don't skip this step! Have a licensed home and a licenced termite inspector inspect the home prior to closing on the home. Make sure that you understand the contract and how and problems will be repaired. -
Look at the cost of insurance.
In today's market you need to look at both the cost of insurance and the availability of insurance. Some of the older homes may require updating just to get a company to write your insurance at a reasonable rate. Some companies just won't write the coverage at all. Very rarely does a contract state that the purchase is subject to you being able to get insurance at a reasonable rate. -
Make sure that you understand your costs associated with this purchase.
Look at both the costs to acquire the loan and the cost associated with the business of renting the house. For example look to see how long it usually takes to rent the property. -
Make sure that you understand yours and your tenant's rights.
When your are actively looking for a new tenant, make sure you understand what kind of background checks you can legally do. This is important, don't skip this check. This comes from personal experience. The first house I ever rented, I didn't do a good job doing background checks. If I had just looked at their credit, I would have know that they always paid late. It would have saved me a great amount of pain and aggrivation
If you are looking to buy an investment home. Call, text or contact Lee Cameron 407-421-1052 or email me.
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