How to Research and Purchase a Good Investment Property

How much do you really know about investment property? Accurate research and professional expertise applied to the purchase of an investment property builds a solid foundation for financial success. You may want to work with a REALTOR who can help to identify the great opportunities in investment properties in the area of your choice. Or, you may choose to do the work on your own. A REALTOR can provide the inside line on properties with potential in the geographic area where you are looking for property. If you do choose to work with a REALTOR, you will save time, and you may have more choices and opportunities.

Research the Property's Past and Present

Some essential information must be obtained about the property's past. For example, do you know the history of the property, or even how old it is? What sort of upgrades have been made to the home? Is the roof waterproof, and is the plumbing and electrical in working order?

What's the Neighborhood Like?

Once the overall condition of the property has been assessed, tax assessment records must be examined to determine property value trends. A good REALTOR will be familiar with the neighborhood where the property is located and if he or she is not, the REALTOR should check the neighborhood at different times of the day and night and speak to some neighbors. If there is a homeowners association, check the guidelines, assess fees, and be certain they allow rental of properties.

Assess the Bottom Line

For what purposes are you, the investor, going to use the property? To rent? To house your business? Or, to rehabilitate the property and sell it at a profit? Once this is determined, you can assess the bottom line.

Are you paying cash for your investment property? If not a mortgage will have to be paid. Have your REALTOR determine if rent and applicable fees will cover the mortgage, property management and maintenance. Consider property management if you do invest in property. Research fees and services provided by different property management companies, or ask your REALTOR if they provide this service, because many do. If you do not want to collect rents and contract repairs, find a property manager with the skills to negotiate, be your intermediary, and facilitate business in your absence. For investors who rehabilitate and sell buildings at a profit, a decent turnaround is 60-90 days from the time of purchase to the time the property is put back on the market. Three to four contractors should be researched and they should provide written bids with time estimates on their projects.

Document Fund Availability with Your Offer

Once you find that dream investment property, don't forget that offers need to be accompanied by your financial institution's statement of fund availability or a lender's approval letter. This will help make certain your offer will be accepted over other offers that may not come with appropriate paperwork.

There are still plenty of great deals on investment properties in this real estate market, and there are some less than desirable properties as well. Do your research. Or, hire a professional who will do it correctly for you. With proper planning and decision making, your real estate investment should be a profitable and worthwhile endeavor.

About The Author

Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property as part of her business. Her husband Joe is a contractor who collaborates with her on rehabilitation of properties. She has helped numerous clients invest in and make money on property investments in Southeastern Virginia. Visit http://www.voncannonrealestate.com for listings; vonmor1@cox.net

---

Purchasing International Real Estate

Interested in investing somewhere other than your back yard?Management companies... Read More

Take A Shotgun Approach

An effective real estate advertising strategy entails a 'shotgun' approach.... Read More

The Psyche of The Seller and The Tenant Buyer

For those of you who were not psychology majors the... Read More

Finding A Capable Agent To Meet Your Real Estate Needs

Whether you're a first-time buyer, selling your current home or... Read More

Buy FHA HUD Homes

FHA HUD homes are those dwellings that have been acquired... Read More

Real Estate Marketing, Do You Use Direct Mail?

Prospecting for leads is by far the most difficult part... Read More

Not Everyone is Buying or Selling, Some are Doing Both

As if one real estate transaction is not hectic enough?... Read More

The Pros and Cons Of Hiring A Real Estate Lawyer

You're travelling in a foreign country and you get arrested... Read More

Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own!

In the United States, less than 10% of all For... Read More

I have a buyer for your property and I can sell it now!

A Realtor has just talked to you and said, "I... Read More

If You Cant Afford to Retire...Move

According to Warren Bland, PhD, an award-winning author and geographer... Read More

Selling Investment Houses: Props & Profits

New Marketing and Design Psychology ideas help you stage homes... Read More

Real Estate Appraisal - Rental Properties

Real estate appraisal for rental properties isn't the same as... Read More

For Sale in Ridgefield

Ridgefield Connecticut, located near the New York border, is a... Read More

Purchasing Florida Investment Property And Various Considerations

Purchasing Florida Investment PropertyConsidering researching the purchase of Florida Investment... Read More

Real Estate: A Strong Investment

Description: Even in uncertain economic times like these, history shows... Read More

Real Estate Investing Skill Acquisition

Real estate investing is not in any list of high... Read More

Sell your Property Faster

Learn how to sell your property faster and at the... Read More

Guide To Finding The Perfect Central Illinois House

Central Illinois is an area rich in cultural activities and... Read More

Home Equity Loans ? Beware of Appraisal Fraud

A new report by the independent Demos group has revealed... Read More

Alicante to Mar Menor - You can Still Find Cheap Property in Spain

The Murcia region in Spain benefits from some of the... Read More

Investing in the Baltic Tiger: What Has Estonia Got to Offer?

Estonia's reputation is growing within the property investment market. Rising... Read More

3 of the 5 Ways Real Estate Can Take Advantage of Blogs and RSS

Earlier this month, Realtor Magazine announced that they would be... Read More

Sell Your Home Without Paying Any Commissions

All of us know that real estate commissions can work... Read More

How To Get More Money For Your House

If you are thinking about selling your house, you should... Read More

Real Estate Investing and Home Ownership

If you already own your home, you will probably make... Read More

Fixing Houses: Mixing Your Own Paint for Savings and Harmony

To make the maximum profit on your investment properties, you'll... Read More

Find the Right Apartment Quickly and Easily Using an Apartment Locator Service

You've probably seen the ads or heard about apartment locators.... Read More

Selling Houses: Psychological Effects of Landscaping

Buyers think they care more about the inside of the... Read More

Personal Branding Techniques for Real Estate Agents and Brokers

Branding can be done to any product, or any person.... Read More

Tax Deferred Exchanges of Investment and Business Real Estate

The Primary Residence taxation, the Residential Replacement Rollover, Sec. 1034... Read More

Landscaping Adds Great Value to Real Estate And Helps You Sell

Over the years several of our clients have had professional... Read More

Walnut Creek Real Estate

Looking to relocate to a Californian suburb with a low... Read More