Any advice for a first time buyer?

Question

I am thinking about buying at least one piece of property this quarter and then maybe up to two next quarter. I am interested in learning about investment property. I don't mind sitting on them for a while until the market recovers, because I know what the return will be like.

I am not worried about financing. I have that in place. I just want to if anybody has some good advice for me.

I have found two pieces of property, and I need to decide which one would be better for my breaking my cherry.

Thank you all for your time!

Answer 1

Buying investment properties really depends on what type of properties you want to buy and what your plan is to do with them. You need to make sure you understand what your goals and finances are and then stick with your plan. For example you need to know if you are planning on renting out the homes, finding fixer uppers to sell for profit, a mixture of both, or if you plan on holding the properties for less than a certain amount of time. Many people do not put enough thought and planning into real estate investing and this is one of the biggest reasons for failure. If you plan on renting the home, can you afford to make the payments if you don't have a renter for awhile? Do you have enough money put away for a rainy day in case you need to repair a roof, fix a furnace, replace a hot water heater, etc... in the rental property? Have you done market analysis's in the area where you are looking at rental homes to make sure you will be able to get enough rent to cover the mortgage payments. Are you allowing yourself enough cushion to protect yourself in case you lowball the repair work that needs to be done to the house? Do you have a good background in construction so that you can go into these homes and estimate the proper amount of repair work that needs to be done to turn a profit? Are you also thinking about the closing costs you will need to pay when you buy the home and then again when you sell the home (along with Realtor fees and everything else as well)? Below is some information about buying foreclosed homes. Good luck to you.

Answer 2

Location location location, is the rule in real estate. Have you had it checked out by a handyman for termites, bad electrical wiring, is it in a flood plane, what side of the street as that affects where the sun shines...Traffic, congestion, type of neighborhood, overall condition. Does the roof leak, what kind of foundation does it have...YOu need to read up on this.
The real estate market is in a slump and won't be back for a long time. some areas will do better than others, Las Vegas, Arizona, California are having bad times. What is the job market like in your area. Austin Texas is a good market...Nothing lasts forever and unless you are young your investment may take years to recover. So buy one property and see how it goes. You should have 6 months mortgage payments in the banks. You then have insurance, liability utilities. If it is a rental whole different headache. what are the laws like in your state on evicting non paying tenants. In parts of CA they have stayed 6 months or more, not rent and still can't kick them out. So talk with a professional. Do not trust just any RE agent a lot only want a commission...Choose wisely...

Answer 3

1. Find a good housing inspector. This will help you uncover "hidden" costs in order to obtain a more accurate estimate of your initial outlays.

2. Run the numbers carefully. Can the potential rental income cover debt and operating expenses (mortgage, taxes, insurance, maintenance, vacancy, marketing, etc..).

If flipping the house, #1 is critical. If maintaining it as a rental property, both #1 & #2 are critical.

Answer 4

Have a home inspection performed. Your real estate agent can find a good inspector for you. It will cost a couple hundred dollars, but could easily help you avoid thousand of dollars in surprises later.

Answer 5

If you plan on renting these properties out, seriously consider hiring a property management company. The benefits are listed here http://mightymortgages.com/make-money-save-money-save-time-8-ways-rental-property-management-can-help-11.html

Answer 6

If you haven't done it before, look for a duplex or triplex and plan on living in one of the units to really see what the cash flow is like and see if you can afford it. Don't overextend yourself right off the bat.

Answer 7

Get an apraisal first, and a real estate agent to take you through all the right steps.

Answer 8

my mom is a real estate agent....i think she can help you???where do you live??

Answer 9

REAL ESTATE AGENT