Before buying cheap investment properties, conduct due diligence to determine their condition, and have an investment strategy before selecting a property, according to Bankrate. Set a budget to correct maintenance issues in a property before leasing it out, and If you plan to invest in rental properties, consider the rental regulations in the area, suggests the Consumerism Commentary.
Understanding local rental regulations may help you avoid township-enforced renovations to meet local building codes, which may raise the cost of the investment property, says the Consumerism Commentary. Doing due diligence on a property deal lets you determine if a property requires extensive repairs that may make it difficult to sell. When considering whether or not the value of a property is likely to appreciate, analyze the market conditions to avoid basing your purchase decision on assumptions, recommends Bankrate. Having an investment model beforehand allows you to find a property that matches your plan.
Enlist the help of a licensed home inspector to rule out or identify maintenance issues in a property and to get estimated costs of correcting them. If you are considering buying homes to rent, find communities where the properties are likely to find acceptance, and avoid settling for properties in crime-prone areas, advises the Consumerism Commentary. Consider ease of access to the plumbing or cooling systems to allow repairs and lower your cost of maintaining the property.