Thank you for visiting my blog! Today I want to write a little bit about what it’s like to purchase an investment property. An investment property is a home, condo, or building you purchase with the express purpose of selling/renting it later for a profit. Most of you have already purchased a home and are familiar with the general home buying process. However, when it comes to purchasing an investment property, there is more to consider.
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Purchasing an investment property does not always mean investing in a property that is ready to turn around and sell or rent right away. You should hold onto it until the property value has increased and sell it for a profit. Or, you can choose a place that needs some updating, invest some money into renovating the property, and flip it (sell it) for a profit.
When you begin the process, you’ll want to look into how the real estate market is doing. For instance, are the value of homes in the area steadily increasing? Is the average time for homes on the market short or long (meaning, does it take a long time for a home to sell in that market or are they selling pretty quickly)? Are there several buyers bidding on homes in the area when they come on the market (is there buyer competition on the homes driving up the asking price)? Are they selling above the asking price? Are larger companies expanding into the area creating more job opportunities? These and many others are all signs that the real estate market in your chosen area is doing very well and over time should continue to increase in value. This will give you a great return on your investment in the future.
That being said, signs of a potentially good investment opportunity are not always apparent. Some markets are a little slower to recover from the real estate market crash in 2007. If there is a market you are assessing and considering purchasing an investment property in, you’ll want to connect with a local real estate agent who knows the area very well. They can pull a detailed market analysis for you to review and help you choose a home in a good neighborhood where the home values are seeing, or, due to coming opportunities in the area, will see a steady increase in value. They will also have access to information through the MLS that you would otherwise be unable to attain. That agent will later help you choose the best time to sell the property to ensure you receive the greatest return on your investment.
If you have any questions about purchasing an investment property, please reach out to me. I’d be happy to assist you and answer any questions that you have. Also, if considering purchasing a property that is a "fixer upper", I have an excellent list of reasonably priced contractors on hand assist with the process. Feel free to visit my website and take a look at my free buyer resources. Thank you!