If you are considering selling your current home, to either move up to a larger home or into a home in an area that better suits your current family needs, great news was just revealed.Last week,
Seven Important Tips To Successful Real Estate Investing
When it comes to investing, everybody has certain goals. However, there are guidelines that have been proven to be invaluable for real estate investing. Here's a list that every aspiring real estate investor needs to know:
1. Compare Both Property Values and Rents. The best measure of a property's market value is the sold prices of nearby properties. It is best to base current values on properties that have sold within the last 3 to 6 months and are similar in style, close square footage, same bedroom and bath count and as close as possible proximity. The same holds true for area rents, check out the rented properties within the last 3 months to see what the neighborhood will bear. If your looking to fix up and resell, in today's market, it's always smart to make sure it cash flows as a rental also to have a back up plan.
2. Specialize In Something You Know Comfort level is a big thing. It can be the difference between becoming a real estate investor to standing on the sidelines and watching others make all the money. Start in a market that you know or are comfortable investing within. Whether you focus on rentals or resales determine which type of properties you want to buy; single family homes, condos, townhomes or multi family properties. There are Pros and Cons to all types of properties, you just have to know which is best for you!
3. Know The Costs - All the Costs A good Realtor will provide you with an Estimate of Closing costs for your purchase. This gives you a solid base to start your research. When evaluating rental properties, you need to take the research a step farther. What are the Operating Expenses? Heat, Water, Trash, Taxes, Insurance, Licenses, Vacancy costs? If an owner is reluctant to provide any information, why?
4. Know Where Your Tenants Are Coming From If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, month to month, they may be living there simply to attract unsuspecting buyers. Check the Leases, ask for the Rental Application and Credit Reports on the current tenants. Ask if any of the tenants have been late on rent payments and how late. Verify the security deposits and make sure they are being held in a bank account and will be credited to you at the settlement.
5. Talk to a Tax Advisor or Accountant Tax advantages are a great part of successful real estate investing. Know the tax situation and see how it can be used to your advantage. Be sure to keep all receipts and checks and documents related to the property and have everything available at tax time to get all of your available tax deductions.
6. Confirm Utility & Maintenance Costs Ask to see the last 12 months utility bills, electric, heat, water, sewer, trash, etc. If the seller tells you they are split between the tenants, ask to see the checks for payment by the tenant. It's a good idea to get an authorization to speak to the oil company or heater maintenance company to discuss directly the condition. Check to see when the appliances were last replaced; refrigerator, stove, hot water heater, dishwasher, washer, dryer, heating system, air conditioning to be sure you will not have unexpected costs. Also, make sure you get ownership at settlement and that they don't belong to the tenants.
7. Inspect it Throughly Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining it with a professional. Hiring professional inspectors to examine the property for defects, wood destroying insect report and radon are the most common. A second set of eyes always uncover more than just one.
Hope This Helps.
Kathleen McKinney, Realtor - Experienced REO Specialist
Platinum First Group powered by EXP Realty Llc
460 S Lewis Rd, Royersford, PA 19468
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