What to Look for When Buying Investment Property
They are told, ¨The kitchen and bathrooms are not up to date and this is what turns away potential buyers.¨ True! Most homes that have an outdated kitchen and bath will be hard to sell, but as an investor you want to take a look at these homes, because they can be opportunities. Often you can buy a home for less money when the kitchen and bath are outdated.
Of course, when you do buy a home that needs remodeling in the kitchen and bath, then you need to estimate the amount of money you will have to spend remodeling. Use this knowledge to negotiate a lower price with the seller. Dean Graziosi has often emphasized the importance of knowledge when buying a real estate investment, and there is no difference here. In order to negotiate a good price on one of these homes you need to have some kind of idea, as to the amount of money you will need to have to remodel a kitchen or a bath. A good place to start learning about this type of thing is to visit several of the remodeling sites online. You can also visit some of the larger home improvement stores to get an estimate on the price of products.
Often, you don’t have to do a large remodel of baths and kitchens. Most of the time small changes, like the change of counter tops and cabinet doors will give the kitchen an updated look. Even changing knobs, and updating the flooring can make all the difference in the world. Sometimes the only thing that you need to do is change out the appliances and put in modern, energy efficient appliances. Remodeling a kitchen or a bath, may make you several thousand dollars, when you do decide to turn the property around and sell it.
In conclusion, you want to find investment property that may need small kitchen and bath remodeling, then negotiate a lower price because of it. Once you have bought the property then you want to put a little money into the kitchen and the bath to make it appear more modern. By doing this you will make a nice profit when you want to sell. Even if you decide to rent the property for a period of time, you are more likely to get long term tenants when the bathroom and kitchen are updated.
