Rental Vs Flipping

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

Foreclosed property investment has become an exciting endeavour for real estate investors. However, deciding on a favourable exit strategy may be tough. Should you rent out the property? Should you rehabilitate it and wait for the housing market to appreciate? Should you simply buy, rehab and re-sell for a reasonable profit?

The returns are promising in all of these. While one fetches you “quick profit”, the other generates a fixed monthly return over a period of time. So, what are the features of both these strategies? How does one choose among them? Which is safer?

  • Flipping properties: If you wish to make “quick money” from Fort Worth investment real estate, you simply need to find the right property at the right time. Well, you need not scan through innumerable newspaper and TV ads to find the apt property. You can employ the services of an experienced real estate agent, contractor, attorney and accountant who will assist and guide you through the journey of acquiring, repairing and re-selling the Fort Worth investment real estate property.

However, you need to be conducting a thorough research of the property, so that you do not face any unlikely surprises in the form of dilapidated walls, broken pipes or the like. The costs of repairing these might quickly eat into your expected profits. Furthermore, you also need to inspect the neighbourhood in which the property is located. You need to understand if the area has a demand for “houses on sale”. For instance: buyers often do not purchase a house in a neighbourhood that has a high number of vacant and distressed properties.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

Here, the experienced real estate agent can inspect the property and also help you estimate the repairs cost. You can work out your profits correctly only when your estimates are right. Leave this to the experts to arrive at the right figures. When you do it with the experts, you are bound to make “quick money” with the buy/fix/sell formula.

  • Renting out properties: Yet another option in Fort Worth real estate investing is to acquire the property, hold it and sell it after the housing market shows an upward trend. In the meanwhile, you can not only earn a fixed amount through rentals, but you can also enjoy the benefits of possessing a strong equity.

However, there are certain risks in renting out properties too. Managing tenants can be demanding and troublesome. It may be tricky to get your property vacated when you wish to sell it. If you want decide to take up the rental strategy in your Fort Worth real estate investing, you can take the safe route by protecting your rights in a well-documented lease agreement. Employ an experienced attorney to carry out this job. Furthermore, protect your property with the right insurance policy. Once you take care of these points, the buy/fix/rent strategy can promise you a fixed monthly income and a strong equity.

Both the strategies have their pros and cons. You can choose the one that fits into your requirements, limitations and expectations. Do your homework and you will be able to make the right decision. Research and patience is the key to successful Fort Worth real estate investing.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: February 10, 2018 — 6:08 am
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