Purchasing A Rehab Property For Investment

The most important aspect in real estate is location. You’ve heard it all before: Location, location, location. Location has everything to do with the real estate value. For this reason, it is important for any buyer to give the location of the property they are buying for investment the utmost consideration. Investors seeking rehab property for investment should purchase property in a good location first and foremost. Resale value should be considered whenever you are purchasing property, but it is even more important when you are planning on using the property as an investment and counting on the sale to make money.

Another important factor when purchasing rehab property for investment is the layout of the home. Three bedrooms sell better than two bedrooms. Homes with garages sell faster than those without. A smooth flow from room to room is desirable by most homebuyers. Consider the layout, number of rooms and size of the rooms when purchasing a rehab property for investment purposes.

You will also want to make sure that the property can be rehabbed within your abilities. If you are an investor who is handy and able to fix things, you can make some money by fixing up a rehab property. If you are knowledgeable about certain trades, such as plumbing, you can even make more money by purchasing properties that need new plumbing. Use the skills you have and allow them to work for you when rehabbing. Understanding what is wrong with the house, what has to be fixed and how much it will cost to fix the home is crucial when purchasing rehab property for investment.

If at all possible, when purchasing a rehab property for investment, the investor should get a home inspection from a reputable inspecting company. Many sellers will not want to pay for this and will state that the property must be sold “as is.” If this is the case, a wise investor will offer to pay for the home inspection and insist on having the property evaluated by a professional before choosing to invest. While many problems with a home can be easily observed, others can be hidden. And although sellers are required to disclose any problems with a home to the buyer, not all sellers are honest. One would hate to purchase a rehab and find hidden problems and rely on having to sue the former owner, who may be anywhere by this time.

Purchasing rehab property for investment purposes can be a rewarding way to make money in today’s real estate market.