If you're buying residential property to make money on, you need to watch out for a few key things. Since there is going to be more than one residential property for sale on the market, you're going to have to compare available properties within your price range to one another so you can get the best deal.
Your real estate agent will assist you in getting the best residential property for your needs if your end goal is to make money on the purchase. To better narrow your search, educate yourself on these key things to look for when buying residential property for income purposes.
A convenient location
Consider the type of renter you want to appeal to if you're buying a residential property for rental purposes. For example, a larger single-family home should be located near prime schools, parks, and family-friendly attractions. If you're buying a fixer-upper, consider buying a worn down home in an otherwise affluent neighborhood.
The right location will make the residential property you buy easier to flip for a profit or rent out to the right people. Before asking your real estate agent to give you a tour of any residential property you're interested in, drive by the property first to ensure the location is prime for what you want the property for.
If you want to make money on a property, you need to make sure the residential property you buy has minimal work to be done on it. Even a fixer-upper home shouldn't take up a huge chunk of your time or budget to make it flip-worthy.
You're not just looking at the home itself when it comes to the work that needs to be done, you're looking at the outside of the home as well. A residential property that has a spotty landscape, is in need of new paint or a new gutter system or needs a fence put in to increase curb appeal might take more work than you are prepared to put into the property.
Take a notebook with you when you go look at any residential property for sale so you can make note of any potential repairs you'd have to do if you had an accepted offer on the property. Knowing in advance what money you'd have to put into a residential property for income purposes can help you determine what the home is worth to you. Pay attention to windows, carpeting or other flooring needs, and other housing expenses you might run into when looking at residential property for sale.