Purchasing
distressed properties for renovation and resale is one recommended entry path
to the real estate investment field. Knowing what to look for in an investment
property can help novices achieve a higher degree of success in their first
rehab projects to boost profitability from the start. Here are three tips for
better real estate investing.
Location Still Matters
The
single most important attribute of any property is its location. Almost
everything else can be changed or upgraded to suit the needs of prospective
tenants. A bad location, however, will limit interest in the property from
buyers and renters and will significantly reduce the flexibility available to
investors in the real estate marketplace.
Consider Potential Return on
Investment
Homes
that are considerably larger or smaller than others in their neighborhood
present special difficulties for investors. These homes may be less desirable
because of lack of space or higher prices compared with others in the same
area. Ideally, investors should choose homes that will be of roughly comparable
value to others in the area when fully restored and repaired.
Stay the Course
Holding
on to real estate investments even during downturns in the economy can allow
investors to enjoy greater stability and improved opportunities for profit when
the market recovers. By sticking it out through temporary setbacks, novice
investors can position themselves for long-term success in the real estate
market.
