Are you considering buying an investment property? The Henbest Team can partner with you from start to finish. To start, are you wanting to purchase a home to rent or flip?
When selecting a rental property where you will collect rental income as an investment, there are many factors to consider and these are just a few:
- Your monthly expenses vs. monthly income.
- Rental rates in the area.
- Days on market for rentals in the area.
- Overall price vs. comps – you’ll want it to be a good purchase price for future re-sale too.
- Condition of the home.
- How does it compare to other rentals?
- Will you need to invest in upgrades to make it competitive with the market?
- Does it need repairs?
- What are the maintenance costs?
- Monthly upkeep
- Future repairs
- Are there large trees to trim?
- Is there a large of amount of grass that will require a lot of water?
- Will you maintain the landscape or a tenant?
- The tenant may not take as great of care of the landscaping as you’d like.
- Exterior paint
- When was the last time it was painted?
- Big ticket items
- Any routine overhead expenses
- Tax Advisor – ensure you are doing what is in your best interest for taxes
This video also gives some tips for once you own an investment property:
If you’re looking to purchase a home to flip, where you will update and then re-sell the home, there are many choices to makes and things to investigate and we are here to partner with you for each step. Here are just a few things you’ll want to consider:
- Evaluation of the home at the sale price vs. what you’ll invest and what the home will ultimately be worth. This takes a lot of research and investigation.
- Does the home need updating or renovating and consider the time and investment vs. return.
- Talk to a tax advisor for any tax implications
- Who will handle the renovation? From demo to selections to permits to installation?
- How long will it take to make the improvements and then list to sell? What are your carrying costs during that time – HOA, Insurance, Taxes, Mortgage (if there is one).
- Once completed – What is the cost to re-sell and potential days on market (carrying costs).
The Henbest Team can assist you with investigating in this process and your decision making, so call today 480.266.8785 and let’s start the journey.