Purchasing investment property has always been something that people are interested in. They just don't know where to find it or how to go about getting it. There are several strategies and every investor has their own, but here are a few tips to get you started.
In order to make a profit, you are going to want to find a bargain. One of the first places to begin your search is with the sheriff or HUD. Repossessed HUD homes and sheriff sales are excellent places to find homes that are a much lower price than fair market value. Just be sure that you thoroughly check out the home before making an offer. If the home is in need of renovation, them you may need to consider how much you will need to spend on the home before you make your offer. Other places that you can check include the local paper, the Internet and the courthouse.
Location is also very important. You will want to look for homes in an area where there will always be a demand for housing. You will want to choose homes in and around the city versus in the country. This helps to ensure that you will always have a demand and the home won't sit vacant for long. Another option is to go for hot vacation spots such as off the shore or in and around the mountains. There are many individuals who are willing to pay a higher rent for a luxurious location. If you can have renters during the summer, then you have potential to make a good profit.
When you are considering properties, you will want to maximize you rent income. Look for 2, 3, or 4 room homes or units that will get top rental dollar. This will allow you to cover the mortgage payment and make a profit at the same time. Don't overlook small apartment complexes or duplexes as you can have more renters and potentially earn a higher profit.
While purchasing investment properties can be profitable, don't forget about the additional responsibilities you are taking on. There will always be repairs that need to be made, expenses, inconveniences and difficult tenants. This is just the nature of investment properties, but by being a good landlord and working with your tenants you should be able to have a good rental relationship and potential for profit.
