Me too! What better time is there to buy a investment home in Baltimore and Harford County than right now?!?!
BUT!! Meet with a local
REALTOR first who has experience and learn the game before you waste or loose money!
A few things....
Decided what you are going to do with your REAL ESTATE investment and set goals.
Are you going to rent? resell? hold?
New to investing? It's ok, we are were at some point! Select an area you know!
Start with your own community see what homes are SELLING for, not listed for! Don't want to start with your own neighborhood? Branch out! But start where you know and not a foreign area that you don't know!
What should I pay for an investment? Contact your local
REALTOR, meet with them review comparable sales and rentals in the area. What did a real buyer actually pay to live in the community? What are renters actually paying to rent in the community? Based on those estimates, work backwards. Factor in purchase, renovations, improvements, holding costs like mortgage, utilities, hoa's, etc, broker fees to sell or rent!
Research income potential. Again, meet with your
REALTOR to get comparables. Look at what's sold, not what's on market if it's on the market, it hasn't sold and could be over priced! Be realitistic. Investing in Real Estate is not a personal purchase it's a business. Your home upgrades will probably be determined by whether it will be a rental or a resell. Don't renovate based on your opinion, base it on what's moving!
Financing? Get estimates first!! Don't even put the keys in the car! What will your mortgage payment be? Putting money down? Do you already own a home? Chances are the lender will require atleast 20% if not more pending your qualifications and assessts. Let's not stop there! Consider, Gas and Electric, Water, Hoa/Condos Fees, Ground Rent, etc.
You need to know exactly how much it will cost you to have this place before you preview homes or write an offer. If not, you could be making a huge financial mistake!
Have reserves!! You will need money! Renovation/remodel, and carrying costs!
Select licensed contractors! And get atleast three estimates! As a REALTOR that also works with buyers and sellers I can't tell you how many home inspections get a big fat FAIL because the "Investor" gets a non-licensed contractor to do the work quick. It looks pretty, but it's not up to code, or halfway done and the deal falls through or the investor has to pay more money now because they have to correct, what was suppose to have already been corrected the first time!! Shortcuts cost. Don't do it.
A few other things to keep in mind! Caution: Be careful when buying in areas with Condo's and Hoa. Some associations have a limit on the Primary Owner/Investor Owner ratio. You may not be able to rent your rental! Do your due diligence first!
ALWAYS screen tenants. Scimping on this quick and inexpensive step could cause you a few months worth of court headaches! While any situation could arrise, the more you screen your tenants the better off your are. Just a few criteria are credit, income, employment and any additional criteria needed to make a fair decision for occupancy.
Real Estate is how many of the wealthy have become wealthy. People always need a place to live. Let's get started!
Contact REALTOR or Start your search at
www.HeleneSellsHomes.com
Remember any investment is and can be a risk and nothing is guaranteed. The market for resales and rentals can always fluctuate. What's selling and renting at todays price could be different tomorrow or six months from now or a year from now. Educate yourself. This is your money. Your investment. Your business.
