There are many different strategies for finding these properties. The easiest way to find a rental house to buy is to keep track of homes for sale in your neighborhood and surrounding area. You already know the locale and the relative stability of prices. Management will be easy because you are nearby.You may know the house and its upkeep by reputation.
A word of caution, though. If you know the seller, think long and hard about revealing your identity if you plan to make a low offer. You might want to work through an agent, as an anonymous buyer. A neighbor who has heard you talk often about a burning desire to invest in real estate is a neighbor who might think you are the more motivated party. That person will be the one to stand firm on his or her price, thinking you will be the one to crumble in the end.
Notice when the first "For Sale" sign goes up on each sale home. Most listing contracts expire after six months if they are not renewed. After five months and two weeks, call and request information about the house. At that point, the seller is probably very motivated.You can usually buy the property at a significant discount.
You will be able to find many bargain properties with that type of focus. Often, a very minor amount of cleaning, painting, and simple repairs will be enough to make a house rentable.
As a general matter, the best kind of home to buy is usually going to be the current owner's personal residence. Owner-occupants take better care of property than tenants or landlords. You will still need an inspection, but the odds are much greater that the home will have few problems and that maintenance has been performed in a good manner.
Aside from that, you want to find something that is as maintenance- free as possible. For most people, that spells out B-O-R-I-NG, but you should look for excitement someplace else. The best purchase will be a three-bedroom, two-bathroom, one-story brick house with no large trees, no fireplace, a level lot and a fenced-in backyard. It should be in a good elementary school zone, because younger families are the more likely tenant candidates and those tenants are your best buyers if you ever decide to sell. This is called the grow your own buyer strategy.
Wall-to-wall carpet is better than hardwood floors, because you can clean carpet or replace it fairly cheaply. When those hardwood floors are ruined, the price tag is expensive. A fenced-in backyard makes the house seem more safe.
A level lot is easier to maintain - smaller trees do not drop branches on your rooftop, and the absence of a fireplace cuts down on fire risks. Laminated countertops are better than tile because you can replace laminate easily, if you need, but that tile grout will never be white again. For the same reason, look for solid vinyl tub surrounds and sheet vinyl flooring in the kitchen and bathrooms. Remember, you are not buying your personal dream home. People who rent houses are much more flexible in their desires than people who buy homes. Nothing is ideal, but try to buy as close to these recommendations as possible.
Our website is not responsible for the information contained by this article. Articleinput.com is a free articles resource thus practically any visitor can submit an article. However if you notice any copyrighted material, please contact us and we will remove the article(s) in discussion right away.
Note: This article was sent to us by: Jason Sternels at 07012010
1. What is the relationship between macroeconomic variables and housing markets
All articles are property of their respective authors. Please read our Privacy Policy!
© 2009 ArticleInput.com.