Property investing and “flipping houses” has become a popular over the past few years. Various real estate and home renovation shows like Fixer Upper on HGTV have certainly shown how you can make extra money through property investing. It’s not always as glamorous as it seems on t.v. though! Although my husband and I have flipped a few houses successfully, it is a lot of work and requires a great deal of financial planning beforehand to make sure your expected “investment” doesn’t turn into a money pit! Whether you are considering buying a fixer upper to sell quickly for a profit or if you want to obtain rental property as a long term investment, here are some basic property investment tips that any potential property investor should consider. *This post contains affiliate links.
Research The Market
As exciting as the whole idea may seem, and even if you have extra finances available, don’t rush into buying the first “great deal” that comes along. If your property purchase is going to be an investment that really pays off in the long run, then you need to ensure that you’re researching the market. If you’re new to property investment, take some time understand the current market conditions and when, where, and how to make the best purchase.
Buying at the right time is one of the most important property investment tips as it will help you get the best return on your purchase. Essentially, you need to buy when prices are low and the market is in a bit of a slump. Obviously, if you’re in a rush, you may not be able to wait, but ideally you should try to buy when the time is right to allow you to maximize on your profits.
Be Sure You Will Make Money On Your Investment
When searching for potential properties, it’s important to remember that you’re making a financial investment. Try not to your personal preferences toward the property get in the way of any decisions that you’re making. Yes, you may fall in love with that charming cottage with one quaint bathroom with the original claw foot tub, but the 1980’s ranch with two updated bathrooms for the same price is probably a better investment because it will more than likely be more suitable to the needs of today’s families and will be more marketable.
Investing in Mobile Homes for Rental Income
Fixing up a mobile home to rent can be slightly different from renovating traditional property. For example, The cold is a big problem in mobile homes and it can make it very uncomfortable during the night. Usually, this is just down to poor insulation, but that is easily fixed. Your will want to install good quality drywall for mobile homes throughout, so endure that it is a lot warmer during the winter months. Another factor consider is storage. Space is limited in a mobile home but you can research some clever ways to improve your storage.
Install A Wood Burning Stove
Most people don’t think that you can install a wood burning stove in a mobile home because it’s too dangerous, but that isn’t the case. As long as it is properly installed by a professional, you absolutely can add a wood burner to your mobile home. There’s nothing more welcoming than a real fire, so this is one of the best ways to transform a mobile home into something truly special. Just make sure that you get a professional company that knows what they are doing to install it, and take all of the necessary safety precautions.
Space is limited in a mobile home but you can research some clever ways to improve your storage.
It is extremely important to have a thorough home and mold inspection done before purchasing any property. There is no amount of money worth getting into a fixer upper that is full of health hazards that can’t be remedied! If a house sounds too good to be true, and the price is incredibly low, then you could be walking into a disaster. Before purchasing make sure that the foundation is stable and if the basement needs waterproofing or the attic needs repair.
Stage To Sell or Rent
Once you have purchased and made any necessary repairs or renovations, it’s time to stage the property to sell it rent. When it comes to the styling the space , try not to add too much personality or clutter. You won’t really know what kind of taste your prospective buyers or tenants have, and you’ll want to appeal to the mass-market. By painting the walls a light neutral color and decorating with neutrals you can create a classic look while making the home “move in ready.”
Even when you have the property completely finished, staged, and ready to put on the market however, the “market” itself might not be at it’s peak. Just like there is a right time to buy, there is also a right time to sell, so you may have to wait so that you don’t end up getting less out of the property than your desired asking price or worse, taking a loss. In the meantime, you may find that you still get an excellent rental return on the investment.
Property investing can be an exciting way to earn extra income, but it takes lots of planning ahead of time, and having extra financial resources is also vital to a successful outcome. If you have considered the possibility of property investment, be sure to refer back to the tips, articles, and websites I have shared here today which will help you make informed decisions and get you started on your way to profitable property investing.
Have you ever “flipped” a home? Or did you ever have a “flip” that was a “flop?” I love talking all about real estate and I love hearing from you!
Thanks for stopping by today!