Many people choose to purchase an investment property as a way to supplement their income and grow their net worth. It can be hard to be a beginner in the world of real estate investment. One of the most important parts of owning real estate is finding the right property to own. When you’re ready to begin shopping around, there are a few red flags to avoid when selecting an investment property.
If the house is located in an area where gangs are present, or the neighbors are loud, it can be challenging to find someone who is willing to rent the property. Bad neighbors can make the location difficult to live in and can disrupt the peace in the neighborhood. REW explains that you need to research the homes around your potential property. Some homes on the block may also not be maintained well, which can affect the value of the property that you purchase and makes it necessary to do your homework.
Pests may seem like a minor issue but can become more of an issue over time as they invade the property and are difficult to control. Avoid buying a house that has termites, bed bugs, and other pests that are hard to kill, which can turn into a headache. You’ll end up spending a significant amount of money on pest control services and can have a difficult time keeping tenants in the home.
Foundation problems are not only expensive to repair but can affect the structural integrity of the building. Eden Structural Solutions recommends to look for cracks, earthquake proofing, and sinking that may be present. Make it a point to schedule a foundation inspection to ensure that it’s in good condition and doesn’t need to be repaired. You also want to inspect the basement for moisture that may be present, mold, uneven floors, and sagging.
A Sinking Lawn
One of the most common red flags of a home that is on the real estate market is a sinking lawn, which can be expensive to repair and can require a significant amount of work. Legion explains, “most landscaping professionals should be able to tell you whether or not there’s a potential issue with the yard around the property.” There are many common reasons of a sinking lawn, which can include inadequate or non-existent runoff or low-quality building materials.
It’s important to look for a property that has an HOA to ensure that you can own a home in a great neighborhood that is monitored to ensure that your house doesn’t lose value due to the decisions of other homeowners. Unfortunately, Fowler & St. Clair explain that HOAs can often attract control freaks who impose specific requirements on you, which can end up costing you a lot of money. It’s important to know how to act around HOAs or how to resolve potential conflicts with HOAs. Ask around in advance to determine if the HOA is reasonable or if their requests are unfair so you can decide beforehand if you want to deal with them.
Knowing what to look out for when finding an investment property to own can allow you to avoid purchasing the wrong house. You’ll need to be aware of the surroundings and schedule an inspection to ensure that it’s easy to rent out to the right tenants.
See you at a meeting soon!
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
We look forward to meeting you at a meeting soon!
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