What to Look Out for When Buying Real Estate for Investment Purposes.
Real Estate
It may seem like an easier task than buying a property you’re actually going to live in, but it shouldn’t be. When looking at real estate for rental purposes, you’re going to have to consider the fact that you’ll be responsible for the maintenance of the property – meaning you wouldn’t want to buy a place that’s going to keep you busy almost every day of the week. You also want to invest in something renters would want to pay for. That said, have a look down below at some things that may seem small and unimportant, but are quite significant when deciding to invest in real estate for investment purposes.
Foundation
This is a big thing to look out for. Foundational issues can cause lots of problems in a home – cracks in the tiles, tiles lifting, and cracks in the walls. All these issues can keep a person (and their wallet) pretty busy. When inspecting the property, test the doors inside the house to see if they open easily, and take a walk through every room to feel if any floors are bouncy. Also, take a stroll around the property to have a look at the exterior walls – if they have any major cracks, the house most likely has foundational issues.
Heating and Cooling Systems
This will take some more detailed attention to the house’s interior. The heating and cooling systems are important and should be in a working condition when renters move in seeing as it could cause a dangerous environment if there are any shortages or leakages, especially if they’re gas-fueled. If the house is equipped with these systems, maybe have a professional come over and check if everything is still in order. If not, it can be fixed as long as it is sorted out before renting the property out – a furnace part supplier should be able to assist with any repairs you might require.
Statistics
This is one of the most important things to consider as an investor. Before viewing the property, do some research into the previous few sales in the street as well as the area – this should indicate whether the value of the area is on an upward scale like it should be. If the properties in the area are selling for lower than they were a few years ago, or their value isn’t increasing as it should be compared to other areas, you should maybe reconsider if that particular property is such a good investment.
Plumbing
A house’s plumbing basically runs the entire show – from toilets to showers, to irrigation, to the kitchen sink. Have a look at the pipes to determine whether they are still in good condition. Faulty plumbing can result in leakages and mold, which will cost you some serious bucks later if it has done its damage to the house’s structure and ceiling.
Buying a house to rent out is almost as hard as buying one for yourself. But with the correct guidelines and help, you will be more than able to pick out the properties that are most profitable for yourself, and most desirable for your future tenants.