There are few things more exciting than purchasing your first home for let. Not only are you starting a new path in your investment portfolio, but you're also exploring something that's going to provide you with a source of income for many years to come. Of course, just as would-be homeowners can make mistakes when purchasing a property to live in, there are a number of issues that a new buyer can face when looking for a home to rent out.
Fortunately, you have the opportunity to learn from the mistakes of the buyers that came before you. Here are just a few of the mistakes that people make when purchasing the ultimate investment property.
1. Trying to Go it Alone
Buying a home for income and investment purposes is a huge financial transaction and a really big deal. You need the house you buy to be more than just attractive - you need something that's going to appeal to renters and give you a consistent source of income, with as little stress as possible. The good news is that there are people out there who can help you not only make the right decision but manage your real estate investment when you make it.
As tempting as it is to try and cut costs by "going it alone," the best thing you can do for your future is seek out the assistance of someone who knows there way around the real-estate market, and the neighborhood you're buying in.
2. Not Understanding the Cost of your Purchase
In a standard home-buying scenario, it's easy to make mistakes when it comes to figuring out how much of your budget you're going to use. People often overlook the extra expenses of buying a home, like getting our friends over at Bellhops Moving Charlotte to help them out with transporting belongings or paying legal fees.
The same issue often applies to people who are buying property for investment purposes. As well as the cost of the mortgage, you're also going to need to factor in how much it's going to cost to advertise your property on the market and manage the maintenance costs for your renters too. You might even want to regularly wash and re-paint the outside of your home to give it more curb appeal when it's on the market.
3. Relying on Pictures and Skipping the Inspection
Finally, even if you're in a rush to make your investment and start seeing the rewards, it's important not to rush into anything with your real estate purchase. Even if you see endless photos of a house online, it's impossible to get a real insight into what you're buying until you've walked through the property yourself, checked out the neighborhood, and examined every corner. Remember, this is a big investment and something you can't afford to rush.
At the same time, as tempting as it may be to keep costs low by avoiding the inspection, the best thing you can do to save yourself some serious cash is make sure you get an expert to come and take a look at the property and it's potential. This way, you'll save yourself some serious cash in the long term.