If you get in at the right time, investment properties can become a lucrative source of income. Whether you’re buying houses to live in, rent, or remodel and resell, Lawrence Realty Inc in Red Wing, MN, wants to share a few professional tips to maximize your return. Real estate can be a risky business, but with practice and the right discipline, you can make it a successful venture.
3 Tips for Buying Investment Properties
Before you make any purchases, conduct extensive research. Look into past repairs, any current structural or property issues, and estimate a repair forecast for future breakdowns. At the same time, look at property values in the area, if upcoming factors may raise or lower the home’s worth, and what amenities you can use to market it. All of these details will give a solid idea of what you could sell or rent for.
2. Finance & Under-Buy
Carrying debt is never healthy, and if you’re adding to it, the income from an investment home cancels itself out. If you’re buying, secure a workable mortgage loan from the bank that won’t push too much debt on you. Ideally, the investment should cover mortgage payments while also providing extra revenue. To help you achieve this, it’s also important to under-buy. Look for properties being sold at 10% to 20% less than their value.
3. Know Your Goals
The most important thing is to buy an investment property that meets your needs. If you simply want a vacation home that will appreciate in value, focus on houses for sale in that category. If you want a home to rent to families, look for larger, suburban properties. If you want to renovate and sell quickly, find a home with a marketable neighborhood, amenities, and quick-sale value based on similar properties.
If you’re looking to make an investment, buy, or sell, a real estate agent at Lawrence Realty Inc will help. Their team has extensive experience with the Red Wing market and will find a deal that matches your budget and goals. Call (651) 388-4745 today to speak with their staff, and visit their website and Facebook to look at houses for sale.