Don’t End Up With Problem Rental Properties


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Investors who know what to look out for don’t end up with problem rental properties.  It is important for investors to do their research before getting involved in a rental property and know what to look for in order to determine potential problems.  First, the numbers need to add up and make sense, the seller should be able to supply common facts having to do with the property, the properties location should be determined to be good, and the property shouldn’t have serious maintenance issues.

Those who make sure the math associated with a property determines a positive outcome are able to avoid problem rental properties.  Investors should use one of the many cash on cash formulas in order to make sure that a positive cash flow is likely.  It’s often said that numbers don’t lie.  This is as true as can be, but make sure that the numbers are accurate before plugging them into the equation.

Ask the seller for the numbers regarding their property.  If they can’t come up with good numbers, there is something wrong or they are hiding something.  Investors should move onto another property when a seller isn’t able to supply basic information, thus avoiding problem rental properties.  Investors should do what they can to only work with honest sellers.  Ask these sellers what they like about the area and what they don’t.  If they can’t come up with any negatives regarding the area, they are likely sugar coating the sale.

Take a good look at the property and its location.  Determine that there is indeed a rental market and that the property is likely to increase in value over time.  These two factors are entirely based on location.  In order to avoid problem rental properties, make sure they are located in profitable areas.

The next thing to consider, in order to avoid problem rental properties is whether they have a great deal of maintenance or require large-scale renovations.  While many sellers will be willing to knock off the money needed for a necessary rehab, most investors don’t want to get involved with a rehab property.  Investing in properties that are turnkey allows an investor to begin renting them out immediately and earning profits from the get go.

Those investors who do their research don’t end up with problem rental properties.  This investment is likely to be a long-term one, so be certain that the property meets all expectations and avoid buying a mistake.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

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