This is the most lucrative investment for new landlords and cutting edge investors, one can make and can be challenging at times. First of all you need a good realtor. He or she need to specialize in understanding investors, you have to do a lot of researching to purchase the right home at the right price based on taxes, home owners association, condition and location. A home inspector can come in handy unless you are experienced enough to make the decision. As an investor you need to understand the housing market, financing and risk's at the time when you are purchasing as it changes in different seasons. There are four types of Real Estate you can invest in. Residential, Residential New Construction, Commercial and Industrial.
This comes into place once you have purchased the property. You must have a budget in mind prior closing on the property. Don't go overboard when you encounter this project. The major repairs are generally the roof and air conditioner. Second quality of flooring depending on amount of square footage, the appliances. Cosmetic wise, painting, sinks, tubs, shower's and toilets.
It is best to learn simple skills that can save you lots of time and money. A plus is to know trades so that you can simply make your own repairs that will save you lots of money in the long run. Wether it's property managing or flipping you need to know and understand the processes and how this works to your benefit. If you plan to rent your home, your realtor can provide rental statistics in the local area as the trend adjust throughout the year. The bonus out of all of this is that your property can have the potential to appreciate. So most importantly, have a plan and execute. Lastly you must have a good accountant. If i can be of anymore help feel free to reach out to me at any given time at 407 479-8583.