Have you been thinking about investing in real estate? Are you trying to figure out what to look for so that you can get the best return on investment? Although investing in real estate can be risky, it's also one of the more stable long-term investments that you can make. But in order to maximize your profit, there are some things that you need to do before you even consider making an offer on a particular property. Some of the most important things that you need to do include:
Research schools: If you're not a parent and you have no interest in being a parent, schools may not be a high priority for you when looking at properties for sale. But if you expect to rent out apartments or single-family homes as a source of residual income, you'll definitely need to do some research. Whether you do intend to rent or you're planning on eventually reselling, parents will make up a substantial portion of your potential renters or buyers. If you buy a property in a poor school district or that isn't near enough to the local university, you're going to have many fewer people who are interested. Fewer interested people means that you'll have to settle for a lower price and there will be less profit for you.
Get full inspections: When you make an offer on any properties for sale, always make the offer contingent on getting a full inspection of the property. Do not rely on the basic inspection that is required for any purchase; these are not thorough enough. As an investor, you should always have at least a plumber, an electrician, and a roofing contractor inspect the property in question. Not all flaws are going to be easily discoverable to people who aren't in these professions. For instance, a standard home inspection is unlikely to discover whether or not the sewer line is aging and near collapse.
Be ready to invest more money: A lot of people think that they can just buy a property and immediately resell it or rent it out for a profit. If things were that simple, it's possible that the seller wouldn't be selling the property in the first place. Even if the inspections of the properties for sale go well, you should still be prepared to make relatively minor repairs such as replacing light switches or adding a fresh coat of paint to everything.