The majority of people want to find a property to be used as their primary residence or perhaps as a vacation home. However, for the adventurous and savvy, purchasing real estate as an investment can open up entirely new worlds. Whether that experience is full of the potential and excitement you envision or becomes something stressful and not what you expected has a lot to do with the process to find a property and having reasonable expectations. Here are a few things to consider so that your real estate investment goes smoothly and provides the results you are hoping for.
- Do the Math- You need to find a property that is priced right. That doesn’t mean it is the lowest priced house on the block, but it does mean you have done the math and it will give you the return on investment you want either as an income-producing property or as a fix-and-sell investment. Be sure to factor in that you’ll need a larger down payment for investment real estate than you might have needed for a primary residence.
- Do Your Due Diligence– What looks like a deal can often end up overpriced if you find out later there are substantial structural issues, unpaid taxes or liens, a cloud on the title, improvements that weren’t permitted, or other major issues. If the price is low enough to compensate for issues such as this, then it could still be a viable option, but often it is one to walk away from. Quickly.
- Do Your Planning- Be sure you have a plan for what you will do with the investment property. Once you find a property, you’ll want to have the professionals in place to handle those tasks you do not have experience with or have the time to handle. For example, if you will be renting it out, consider a property manager so you are not the one on call 24/7 when your tenants have problems.
If you would like assistance to find a property in the Hickory, North Carolina area or would like to know about our property management services, give us a call at Thornburg & Associates, Inc. We would be happy to assist you with having a profitable and enjoyable real estate investment transaction. Call today to learn more about any of our real estate services.