Most real estate investors are probably aware of the proverbial truth about real estate investing: “You make you’re money when you buy investment property, not when you sell investment property”.
Okay, its easier said than done. Nonetheless, there are things you can do before you invest in a rental income property to be better assured that you buy income-producing property that has potential of making money later. Here are a couple of ideas:
- Be sure to check the selling price. Conducting a survey of recently sold properties comparable to the property that you’re interested in will give you a good idea whether the price is inline or not.
- Run the numbers. Foremost, be sure that the income and operating expenses are realistic and all included.
- Look for ways that might increase the income. Perhaps some minor repairs or remodeling, landscaping, paint, fences and so on.
- Look for ways that might decrease operating expenses. Perhaps you can find ways to lower the trash, water, or electric bills.
- Examine the property management.
- Look for opportunities to add units.
- Look for ways