Real estate investing done right can be a rewarding experience and lead to a retirement living on your terms through financial freedom. In addition, real estate investments allow you to build wealth and generate passive income. While you may be familiar with the phrase “location, location, location” in real estate, when you purchase an investment property, knowing what to look for is essential to avoid falling into a proverbial money pit.
Inspecting investment properties is a great responsibility that real estate investors should not take lightly. Unfortunately, far too many beginner investors have gotten a good feeling about a property and invested emotionally. For all but a lucky few of these impulsive real estate investors, a sinking feeling likely followed when a hidden problem came to light during an emergency call from tenants at 3:00 am.
You must follow a strategy for your investments that includes diversity for downward turns in any sector; real estate investments can provide security when the cost of living rises because rental rates tend to keep pace with inflation. On the other hand, commercial properties can be a lot more expensive but will provide a higher monthly income if rented. However, as with every investment, there are risks, so it’s vital to the success of your real estate investment portfolio that you understand the importance of researching, assessing, and inspecting an investment property. While covering every possible scenario is impossible, we’ll discuss the most common issues investors face. Not only is a failure to spot the red flags that savvy investors are all too familiar with costly but time-consuming and stressful. So don’t let these five property defects go unnoticed when buying investment property.
Structural
Structural issues with the foundation, roof, and walls are the first property defects to check for if you don’t want your hard-earned investment dollars falling through the cracks or defective drywall when buying investment property. Checking for the little signs of structurural issues such as cracks, chipping paint, doors that won’t close can be vital to know if there is a bigger problem to be looked into. According to HomeAdvisor the average cost of foundation repair ranges from $2,160 – $7,764. In other words, the cost of structural repais can make or break a deal You can avoid investing in defective properties by working with highly seasoned professional investors like us.
Health and Safety
Hazards to health from environmental elements such as lead, asbestos or mold are only a few of the things to be considered when looking for an investment property. These hazards can make or break a deal because they can greatly impact on people’s health, so it should not be taken lightly.
Water
Did you know that 98% of basements will have some problem with water damage? This means that if you own a property, is likely that you had to deal with it at some point or will have spend money repairing water damage in your property. The point is when the damage is so big that you end up spending tens of thousands of dollars in repair costs. Water can cause severe damage and encourages mold growth; both are costly property defects you don’t want to miss when buying investment property.
Electrical and Plumbing
There can be problems with wiring, pipes and fixtures, which are property defects you want to be sure you catch. According to Consumer Affairs, 27.94% of their respondants said that they had to get plumbing system repairs done in 2019. It was almost the most commong reported repair that homeowner had done in their properties. We can help you differentiate between those properties you should walk away from and those with high return potential.
Pests
Another property defect you don’t want to miss inspecting when buying investment property is pests such as termites, rodents, or insects. Professional investors like us can help you evaluate your investments as you learn the ropes of the real estate investment business and the key signs to watch out for when looking at investment properties.
The cost of repairing these issues can reflect on the ROI and also impact on the timelines from purchase to market or ready for rent. With our years of experience, we know exactly what to look for in an investment property. We can help you calculate the cost of repair so you don’t encounter any surprises. Call USA Discount Properties at 901 – 808 8448.