Buying Discount Property for the Long Haul

Tuesday, September 25

 According to a recent Inman News article,
there are many benefits to buying discount property. However, there are
also some important steps to take before plunging in head first.1. Know the NeighborhoodIt
is important to make an investment in rental property with as much
information as possible. Some buyers get so excited about buying
discount property that they don’t go into the transaction in a realistic
manner.Basically, “Listings need to satisfy the interests of
seasoned experts who know how to deal with the reality of a challenging
environment. For example, a purely speculative investor who relies more
on emotion than analysis may not know the history of a neighborhood, the
strength of the rental market, or the repairs needed to transform a
neglected home into a profitable investment.” In order to create
stability for people who are considering investment in real estate
property, potential investors need to use their resources wisely and
gather expert real estate and property management advice before moving forward.2. Take a Calculated RiskAccording
to the article, risk-taking is key to market recovery, but only if
those risks are associated with well-informed decision making. In
essence, “The surest way to understand pricing in a distressed
marketplace is to invest capital and take a risk position on a property
— this is the unique perspective that a veteran real estate agent,
broker or investor offers. Which means you must analyze the evaluation
of properties on both a ‘market comparable’ basis, and also as a
long-term cash flow investment.” This important information is also best
gathered from experienced realtors or property managers in your area.3. Boost the AreaYour
investment in rental property can improve a neighborhood. Indeed, “The
renewal of distressed properties is a win for everyone. By turning these
homes around, and through our efforts on the ground, neighborhoods
improve and price stability returns. Equally important, recycling these
distressed properties into quality retail homes (and clean rentals) aids
those owners who are currently underwater on their mortgages.
Experienced local investors who have a stake in the long-term economic
viability of a community are completely aligned with the interests of
homeowners.”Getting informed and taking the steps forward to
becoming a savvy investor while buying discount property and preparing
it for rental will set you up for success and long-term stability that
is certain to benefit everyone involved. Photo credit 

Comments

Originally posted here: Buying Discount Property for the Long Haul

cheap houses in Nashville, TN

link