You wish to purchase a home, but when you look into your savings bank account, you find out that you are unable to afford it. But, are you sure about that? You may think a home is out of your reach, but in reality, it is closer than you think. Whatever your purpose to purchase a home is, buying or investing to sell later, you have a way of doing that. You just have to look in the right direction to acquire it, which in this case is in the direction of a profitable rehab property. Here is how you can identify if a rehab property is profitable or not:
You do not want to purchase a property, only for it to be left sitting in the market vacant for a long time. If your intension is to rent the property, you need to assess the location of the property to determine if it will provide you with a good and stable market for tenants. If your target market are families, you have to ensure that there is a school district, amenities, and low crime rate. Remember if you cannot see yourself living there with your family, others will not as well.
Hire a contractor to inspect the property and give you a rough estimate on its value. The contractor will be able to inform you if making an investment in the property is a good idea or a waste of money. Sometimes, the only flaws in a properly will be minor and easily fixable, making it a great buy. Properties that need a lot of fixing will not be worth your time.
Properties below the market price sell quickly, as most investors are on a look out for properties that sell cheaper than the slated price. Evaluate the properties in the area, and find one that suits your needs. Furthermore, prowling investors looking for a good buy is good news for homeowners that are unable to sell their home.
You do not want to spend most of your time readying the property for the market. If the property will cost you months, more than you anticipated, you want to skip signing the contract. If you are a long-term investor that wants to renovate the house completely and sell it at a higher price, then a property such as this will be perfect for you.
Do not think you can perform all the repairs yourself, unless a contractor is your first profession. By making all the repairs, you are just delaying selling or renting out a property. Perhaps, you even want to sell your property to a fellow investor for a better and fair price after making all the necessary repairs.
If you are in the investing business of buying and selling property, remember these steps to purchase a profitable rehab property.