|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.|
Texas investment real estate is a hot favorite among real estate investors. As these properties are sold at great bargains, many investors want to cash in on this promising venture.
However, the intention or motive of investment may vary from investor to investor. While some professional investors invest in Texas investment real estate with the goal in mind to flip a property for a quick profit, others may invest with the strategy of building a strong equity from the property through a fixed rental income per month. Others strategy is to purchase a foreclosed property and transform it into a house they can call home.
Warning. If you wish to invest in a foreclosed property in an attempt to build equity through monthly rental income, then you need to be aware of a few things.
The list :
Research on neighborhood: Before investing, you must take a careful inventory of the subdivision.A neighborhood with a high number of foreclosures is an attractive destination for squatters and thieves. Also, potential buyers avoid living in a neighborhood that has several vacant properties.Sometimes, neighborhoods with a high percentage of foreclosures may eventually be bought up by foreclosed property investors whose main focus is flipping the homes into rentals and seek section 8 prospective tenants. The downside is, a neighborhood with a higher number of such properties loses its demand for home buyers eventually. You may face the risk of falling real estate rates in the coming years. Before investing in a property, see the rental demand and rental prices in the neighborhood.
|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.|
Condition of the house: Inspect the property thoroughly before investing. Does it demand structural repairs? How much will repairs and rehab cost? Can you transform it into a residential home, in tune with the current demands? For instance: If a fresh coat of paint, trim and new flooring can regain the property's glory, then it is worth it. But, if the copper pipes are broken and walls are dilapidated, then you need to think twice about it.
Often, foreclosed properties are in a distressed condition. You must take careful precautions before investing.
Investing in foreclosures can indeed be a profitable deal. Furthermore, if your exit strategy is to lease out the property, then you are assured of a steady monthly income and the potential to building equity. However, the buy/fix/rent formula suffers from setbacks too. Before you invest, check the above points to avoid losses or unlikely surprises in future.
The ideal solution
The ideal solution to avoid pitfalls in Texas investment real estate is to employ the services of an experienced real estate wholesaler. These wholesalers have the required experience in real estate investing. They can guide you through the research of the property and the neighborhood. They provide services from the beginning from acquiring the property, through the repairs, even the hunt for a prospective tenant.
These wholesalers boast of an efficient team of licensed and trained real estate agents, whose primary goal is client satisfaction and client service; over and above their personal interests and benefits. If you too want to build a equity portfolio through fixed monthly rental incomes, an experienced real estate wholesaler is your best partner.
|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.|