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Dos and Don’ts for Buying Real Estate Investment Properties

Dos and Don’ts for Buying Real Estate Investment Properties

If you’re considering buying an investment property, it’s worth looking at the entire picture – all the dos and don’ts.

In today’s crazy real estate market, buying a real estate investment could be a great option, whether you live in it yourself or rent it out.

When you invest in real estate at the right time, at the right price, it is PROVEN to be a solid investment. With the housing market at an all-time low and it being a buyer’s market, there has never been a better time to purchase real estate than right now.

Owning investment property is and should be an interactive business. It is a hands-on investment that will require your time, energy, and money.

Learn more about buying an investment property. This checklist will keep you on track for optimal ROI.

checklist for buying an investment property-link

 

 

 

The following dos and don’ts will help you avoid common commercial and residential real estate investment mistakes:

 

In Short: Do’s of Buying Investment Properties

  1. Location, Location, Location
  2. Bigger is not always better
  3. Go with deals that have a 15% return on investment
  4. Stick with homes priced in the low median price range
  5. Stick with a 3 bedroom, 2 bath, 2 car garage single family [City] real estate
  6. Keep your rental properties close to home
  7. Use other people’s money as much as possible

 

Some highlights:

Do choose your location carefully

The property’s physical location is always the first consideration for real estate investors to purchase an investment property. This is the one thing you cannot upgrade once the purchase is complete.

Don’t purchase just anywhere; instead, your focus should be on the long-term value that the location brings, so carefully investigate available properties and find the best sector.

What is the best? The one that is set to increase in value THE MOST in the coming years.

Read more about why location matters so much when buying a home.

why location matters when buying a home - link

 

 

 

 

Do stick with homes priced in the low median price range

Even the most humble homes in a good neighborhood realize the same benefits of lower crime rates and perks like parks and good schools.

They could also offer you the same future increases in price, and the same rental payments, without the premium that high-priced neighborhoods have.

Read about property classes for more on the value of a good low median price range investment.

property classes a b c d - link

 

 

 

In Short: Don’ts of Buying Investment Properties

  1. Do not buy your 2nd investment property until your first is making you money
  2. Do not buy a home without inspections
  3. Don’t buy a property without title insurance
  4. Do not rush in
  5. Don’t get invested emotionally
  6. Do not rely on the seller’s documentation
  7. Don’t handle it all yourself

 

Some highlights:

Don’t get invested emotionally

Don’t purchase an investment property based on a good feeling about the place or the sellers; instead, now is the time to keep your emotions in check.

Buying investment property should be handled as strictly business, and the bottom line needs to be high returns on your investment dollar.

Learn more about how to analyze real estate investments (and choose the best)!

How to analyze real estate investments link

 

 

 

 

Don’t handle it all yourself

Don’t assume you’ll be able to handle all of the repairs yourself unless you’re a multi-skilled master craftsman and construction expert.

Instead, you should rely on experts when it comes to any significant work involved. Otherwise, you may find that fixing the mistakes you make has increased your expenses exponentially when you’re buying an investment property.

 

Keep these dos and don’ts tips in mind

A novice investor may struggle as they try to navigate through the complicated world of real estate investing and purchasing investment properties.

Following these do’s and don’ts will keep your head straight and take the emotion out of buying real estate for investment purposes.

Now that you are ready to start investing in real estate…

Start finding great investment properties on the AQRE Home platform!

AQRE Home offers everything you need to make your dream investment a reality. Including:

  • hand-picked investment properties
  • mortgage broker connections
  • a build-in messenger for easy offers
  • realtor connections across the U.S. and Canada
  • expert guidance from a team with 20 years of combined real estate experience

So start browsing and sending offers today on AQRE Home.

aqre home - buy, sell, rent your properties with us

 

 

 

 

 

 

 

Useful Links:

Housing market

http://portal.hud.gov/hudportal/HUD?src=/initiatives/Housing_Scorecard

Investment property

http://www.investopedia.com/terms/i/investment-property.asp

Title insurance

http://www.homeclosing101.org/whyneed.cfm

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