Buying Your First Investment Property

Houston Investment PropertyGiven the low housing costs in most markets coupled with the low interest rates and the overabundance of homes available, there has never been a better time to purchase an investment property. Whether you are interested in flipping a home or renting it out, you may be feeling a bit nervous about purchasing your first investment property. Whether interested in Bethesda real estate or a home in Houston, it is a good idea to learn more about the basics of buying investment properties to help ease your anxiety and to get yourself properly prepared to make the investment.

Exploring Your Options

While you can certainly purchase any type of property that you wish, many people who are interested in purchasing an investment property choose to purchase a pre-foreclosure or a Real Estate Owned property. A home that is in pre-foreclosure is one where the owner has fallen behind on payments and has been notified of a pending foreclosure. While the owner still retains the ability to sell the home on his own at this point, most are very motivated to get the home sold before it goes to foreclosure.

Once the home goes to foreclosure, it is placed up for auction. If the minimum bid does not meet the
amount remaining on the loan, the bank will purchase the property and sell it for the highest amount
possible. Working with an experienced real estate agent who is knowledgeable about selling this type of
property will ensure you get the best deal possible on the best home to suit your needs.

Choosing the Right Property

Whether you wish to purchase a foreclosure or not, you will also need to determine what type of property is best suited to your needs. When it comes to purchasing an investment property, you may wish to purchase a fixer-upper that you can sell after making the necessary repairs or you may choose to keep the house in order to rent it out. The type of home you are looking for will vary somewhat depending upon your purpose.

If you are looking to resell the investment property right away, you will want to find a home that is need of inexpensive repair. Therefore, it is essential for you to call in an expert to inspect the home in order to give you a clear idea of how much you can expect to invest in repairs. Obviously, you need to keep the costs down in order to earn a profit. If you plan to rent the property, on the other hand, you will likely want to find a home that is already in good shape. This way, you can start renting out the property immediately.

Regardless of your plans for the property, selecting the right location is essential. Whether flipping the property or renting it, you will want to select a home that is in a neighborhood where the value of the home is likely to increase over time. Furthermore, a convenient location that is near to employers and other popular attractions is also a must.

About The Author – Kevin Koitz is a Washington DC native and specializes in Potomac real estate as a Realtor with the Maryland-based Koitz Group.

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