Sunday, August 20, 2017

What should you know before investing in property?

Curt Sutherland
Curt Sutherland, Entrepreneur, Real Estate Investor, Consultant (1981-present)
Know your personal financial situation. Can you handle the mortgage on a second property if it goes vacant for a few months.

Know if you will have the funds available to do needed repairs initially and as needed later on.
Know the area that you are buying in. Do you expect property values in that area to increase or decrease.
Know the expected rent that you will receive. Is it enough to cover the projected mortgage, interest, taxes, insurance, and make enough profit to cover unexpected repairs?
Know the condition of the property. Does the foundation need repair, does the roof need replaced, how is the insulation in the attic, is the wiring aluminum, or copper? Those are all things that can be addressed after you buy the property, but they are things that you should know are potential expensive repairs before you investing.
Know how the water drainage around the property is during a long rain. If there are areas of standing water at your front door, your tenants are going to be jumping in and over muddy puddles to get into the property. That creates additional wear and tear on your property and could be a potential hazard.
Know whether or not the property is in a flood plain. If so you are taking on additional risk and you need to know that flood insurance will be required before your lender to make you the loan.
Don't become afraid to invest, or overthink the purchase and let someone else get a great property before you, simply be aware that you may have to deal with some of these issues at some point during the ownership of the property.


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