Have you ever thought of purchasing investment property? Now is the time to do it. The market is still in recovery and home prices are still low. Investment in property can give you a great return on your money if you think ahead before you buy. Whether buying a potential rental house or a flipping a foreclosure, forethought is required.
Here are a few things to think about.
What is your target market?
There is nothing that will drive you crazy like being all over the page with your properties. High end commercial here, lower end home rentals there…what a headache. Think ahead and plan who you would like your tenants to be. Commercial property? College students? Relocation? Do you even want tenants, or would you rather purchase and resell? These questions should be your very first you ask yourself.
Location, location, location
After you have decided your target market, go the ideal location. The most beneficial property is located where you will have the largest pool of people to draw from as a tenant or buyer. A little homework in the beginning will save you a lot of headache along the way. Is your property close to amenities that people desire? Why would someone seek out that exact property? What would make it desirable to your potential market? In Chattanooga, for instance, rentals could be geared towards university students, doctors doing residencies at Erlanger hospital, or short term workers at Volkswagen.
Fixer Uppers Require Fixing
Buying an investment property usually involves repair work. Lining someone up before you purchase the property that you will hire to do the repairs/remodeling is your best bet. Having someone whose work you know and trust to look at a property and give you a realistic estimate of work that will need to be done could save you a lot of money. Also, if you decide to take on tenants, having someone whom you can rely one to do repairs as needed is also a must.
Thinking about resale is also a must. Chances are you will want to resell your property in the future. Do not buy something just because it is inexpensive. An investment property quickly becomes a debt if you are not making money.
Property investment is a lucrative business for many people. Speaking to someone who is knowledgeable about the area and market you are considering entering into is the best piece of advice you can possibly get. Chattanooga Property Shop is here to help you get started.