Investor’s Basics Series: Things you need to ask yourself before buying a property
In this series aimed to help investors navigate the tricky seas of Real Estate, we will try to give tips and insight into the most important and often overlooked parts of the home buying process.
Buying a property is a huge undertaking, so you need to be sure you have thought it through and have examined every option to make the decision that is right for you. Here are some things you need to ask yourself before you make an investment decision.
What type of property do I want?
You need to have a clear idea of why you want to buy the property. Are you looking for an investment to hold long-term or are you more interested in the quick-flip model of investing? Having an answer to this question will help you know for sure what type of property you are looking for.
Have I truly researched the area?
One of the sacred rules of real estate is: location, location, location! Make sure you look into things like the school district, crime rates, weather conditions, etc before you make a decision.
You want to ensure that the property you are buying will appreciate in value and doing an in-depth research of the area will help you understand the market you are getting into and will be very beneficial when you are looking to get tenants in, if that’s your goal.
A great way to do this is to not just search the internet, but to try and walk around the neighborhood, see the local stores and soak in the surroundings to get a general feel of the place.
Do I want a turnkey property or am I willing to work on renovations?
This question is a big one when you are trying to become a successful real estate investor as it requires a lot of thought and number-crunching.
You need to know if you are ready to dive deep and invest in a property that needs you to be hands-on and save some money (which could possibly go into the renovations needed) or if you want to buy a property that may cost more upfront but is ready to be lived in as soon as you sign the contract.
Am I ready for this investment?
It is not uncommon for real estate investors to get excited about new properties and get in a bit over their heads.
Remember to do the math thoroughly over and over, until you can be sure that you can acquire a new property without getting more debt that you can handle.
Thinking about all of this while figuring out what the best way to go is can be overwhelming, but we’ve got you! Keep a lookout for the next articles in the series to sharpen your investor abilities.
