Investment Properties-Find Yourself a Money Maker!
Submitted by: Greg Vander Wel
Outdated houses, duplexes, multi-family units and mobile homes can all be profitable Investment Properties and they provide opportunities for successful investments. However, especially for rookie investors, knowing what the best strategy is when deciding to buy is essential for making money! The real estate market is always changing, there are always opportunities to make money, but you need to stay ahead of the game. For new investors the best way to invest in real estate is to take it one step at a time – use quality instead of quantity and also be opportunistic.
The houses are as important as the land that they stand on when it comes to Investment Properties. As always, keeping an eye on the entire project and on the whole neighborhood that will yield the best results and the best possible investment. In some cases, the value of a particular piece of land may exceed that of the house that sits on it. This is always a situation where defining your strategy and your investment objectives can play a very important role. Unless you have a budget to re-build from the ground up or you’re interested in selling land itself, you’d better avoid those particular cases.
The Investment Properties that yield the best returns are those that houses that need only cosmetic repairs, are well within your acquisition budget and will sell for a profit after the repairs/modifications that you make. Always look for the properties that sell well below the price in the area especially if you need to make substantial repairs. The first and most important thing I tell EVERY new investor wanting to buy an investment property is this: “Don’t fall in love with the house!” The biggest mistake I’ve seen new investors do is over-improve a rental property. Stick to the theme KISS….Keep It Simple Stupid! When you need to replace the bath faucet, go to the Home Depot and buy the faucet that is on clearance! When you are buying kitchen cabinets, buy investor grade cabinets, no fancy designs, hinges, shelves or colors! Go just with basic investor grade cabinets (Mills Pride is a good brand to look for).
The best way to do successful business is to always do your homework, never rush into buying a house. When it comes to property the objective is staying focused on profits and not over improving the house.
Another rule of thumb to always keep in the back of your mind and follow is paying attention to the details of the property that you’re interested in. Overall a properly does indeed vary in terms of price depending to its location but certain factors can increase or decrease it’s value a lot. Small things such as former tenants, condition of HVAC, plumbing, school districts or run down houses on the same street need to be taken into consideration. Knowing the value of what you are dealing with and knowing as much as possible about the larger picture as well as the details of the transaction. It’s the only way to be prepared and successful. Realnet’s Investment Specialist are experienced and versed in the acquisition and sale of these properties. Get to know us and let our experience help you choose the right properties. Call today! (813)345-4158.
About the Author: Real Estate Broker/Owner of Realnet Tampa Bay is a veteran in the Tampa Bay Real Estate Investment industry since 1999 holding multiple senior level positions throughout his career. http://www.realnettampabay.com/
Permanent Link: http://www.isnare.com/?aid=1625410&ca=Real+Estate