Before you Buy an Investment Property…

Before you Buy an Investment Property…!

Investing in Real Estate is a great way to create income.  Of course, you can make plenty of money but you can also loose money if you are not very careful.   When considering a purchase, consider all the costs associated with that purchase and owning that property.   And always add a buffer.  Guess low on profit and high on costs.

  1. Cost of the property
  2. Cost of financing
  3. Reoccurring expenses  (Mortgage, Utilities, Insurance, Association Fees, Assessments and Property Taxes)
  4. Repairs, Maintenance and Remodeling expense (Interior and Exterior).
  5. Advertising for Tenants
  6. Accounting (Capital Gains, Bookkeeping)
  7. Expenses to resale if that is what you plan to do.

Financial Planning is the key to a successful Investment.

Opinion of Value. Have an  experienced Agent or Appraiser provide you with an Opinion of Value or Appraisal.  Be pro-active!  Review any information that they provide you and do get  a second or third opinion.   Don’t worry about hurting anyones feelings.  This is your investment only if you do this right.

Complete a Home Inspection.  Know what you are Buying Inside and Out.  A thorough home inspection should be completed.  Obtain a total cost to make any and all repairs and improvements.

Accounting.  Create a spreadsheet with all of your estimated costs.  Create a duplicate to include your actual costs so your can compare.  The first investment is usually not a profitable one for most.  Most chalk it up as a good learning experience.

It pays to have an Experienced Real Estate Agent as a part of your team.  He/She can help you find the right properties to purchase and can provide you with a wealth of information being a very valuable part of your transactions.  I have helped many people become Investors and I would love to assist you also.

Be a smart investor and follow the rules.  Do not Buy based on emotion.  If the numbers do not work.  Don’t walk away….RUN!