Turning Old Homes Into Rental Properties
Not all Realestate deals are turn-key solutions where you can buy and flip within the same month. Some properties require a lot of attention before they can be rented or occupied. There is money to be made in buying rundown homes, fixing them up, and wither flipping them or turning them into rental properties. With that in mind, some new to the process may want to know how that’s done exactly and here are a few basic steps to get you going in the right direction with real estate investments and property rentals.
First, make sure you have the capital to afford the property if you are paying cash, or the credit to acquire a loan that will get you into the property. Getting financed for a rundown property can be difficult if the lender wants to play hard-ball. Aside from the purchase, you will need cash to fix the property up. If you are a hands-on property owner, then you may be doing the labor yourself, if not, you will need to hire someone that can come in and fix the place up. Consider labor, supplies, and dumpster hauling as potential expenses. Again, these are basic steps, those costs can get far greater depending on the condition of the home.
Once the interior is cleaned up and the home is ready to be occupied, you should give some attention to the exterior of the home. Curb appeal will do wonders when trying to get the property rented out. Hire a landscaper to clean up the yard, refresh the paint if necessary, and trim any overgrown trees and shrubs. This will increase the appeal of the home, increase property value, and make your neighbors happy.
If you are a hands-on property owner and you don’t mind being Mr. fix it every time something goes out, then you can manage the properties yourself. However, if you don’t have time to fix a leak, replace a water heater, or update an outdated appliance, hiring a property management company to facilitate that for you is highly recommended. There are property management companies all over the country that specialize in managing commercial and residential properties for homeowners ad business owners looking to remove themselves from the tedious tasks involved with the management process.
Let’s summarize this for easy reading.
1. Get qualified for a loan before you begin searching for a property.
2. Find an experienced realtor to help buy, sell, and rent the property.
3. Find a general contractor for any necessary renovations prior to rental.
4. Find a landscaping company to improve the curb appeal of the property.
5. Hire a property management company to manage the home and the tenants.
Real estate investments are very lucrative, having all your needs in order before diving into this will make your life so much easier. Another suggestion is to find online resources to help you figure this out. Try searching for advice in your local area for the purchase and sale of real estate. There may be a real estate guru in your local area that has the experience to help you make this an investment opportunity that will be lucrative for years to come.