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How to find a good real estate investment property

There are many ways to find a good property for your real estate investment. The problem is that many would be investors are not entirely sure what specific type of investment they wish to make. Unfortunately, the type of investment will greatly affect the type of property that best suits your real estate needs. The focus of this article is on finding a good property for the purpose of flipping or remodeling a property.

Finding a Bargain

This is definitely a necessary step when it comes to finding a flipping property with excellent potential. Bargains are often made for a reason. The good news is that many of those reasons are purely cosmetic and fairly simple to fix up. Finding a real estate agent who is willing to work with you on bargains at a lower price provides a great place to start. If he or she is a knowledgeable professional, you should have access to properties that you continue to look for without the assistance of a professional.

Another good place to find bargains of this nature is to search through foreclosures, auctions and homes ready to go into foreclosure. While not always the case, there are many people willing to have more flexibility in price in these situations. Don’t start with a full price offer. Do start with a low price and then negotiate. This may cost you some properties, but in the end, it will be a more profitable venture if you can get the property you want for a smaller investment.

Know the neighborhood

Before making an offer on a potential flipping property, you need to learn as much as you can about the area. You don’t want to put a family home in the middle of a retirement community, nor do you want to put a potential single family home in this type of area. You also want to avoid areas that are entering a state of decline because the rehab is unlikely to realize the profits you hope to get. Instead, look for bargains in areas that are close to some sort of renaissance or areas with very low crime rates and great growth potential.

If you are rehabbing a home designed to attract families, make sure the neighborhood is safe, has a relatively low crime rate, has good schools, and has recreational opportunities that are likely to attract families. These things will affect the price you may expect to pay when the rehab is complete, as well as the type of renovations you will need to make to the property. Buying a property in an area you know nothing about is like buying a property without an inspection – which brings me to my next point.

Get a thorough inspection

This is one of the most important steps in the process of choosing the perfect property for your real estate investment needs. A qualified inspection will prepare you for any issues that may arise during the work on the home. These things will affect the amount you should offer on the home, the amount you need to invest in repairs, and the amount you can expect after everything is completed.

Without a complete and proper inspection, it can lead to disaster when renovations start costing extra money and time because the efforts made to get to the root of the problem are cancelled while you are doing the renovation. Few things will save you as much time or money as having a decent inspection. An inspection can also make you aware of any structural issues, regulatory issues and other problems that could mean the difference between the property potentially being profitable or potentially losing money. It is a good idea to have this knowledge before making an offer on the property.

Recognize that you don’t need to buy the first property you see

This is an important thing to remember. If the first property doesn’t tickle your fancy, then move on until you find a suitable property. This process is part science and part inspiration. If you are not inspired by a property, then it is unlikely that the property will suddenly take on a life of its own to meet your real estate investment needs. Keep looking until you find the property that meets all of your needs in order to find the perfect property for your first or fiftieth flip.