Profile picture for mintbeck

What do we look for when we want to purchase an investment property w/ major improvements required?

  • March 13 2009 - Gainesville
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (6)

A lot of factors enter into a consideration such as this....you have to consider first what your objectives are for the property --- long term investment (rental), a 'flip', etc.

Secondly, you must consider the cost of the improvements...having inspections done are always a good idea if you are not qualified to do your own, allowing an amount for unforseen repairs

The location of the property, along with market conditions are also a prime consideration....as this is an investment, you have to look at the purchase from a financial perspective, not an emotional one....either you are entering into a profitable venture, or you're not (I've done both, as most of us have!!)

Hope this helps
  • September 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Look for a different property that doesn't need much work!
  • September 10 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

After flipping quite a few homes, you can get a bid for $15,000.  You can also get some one to that same work for $7,000.  Get numerous people involed that don't know each other.  If you have never done the work before then you won't know if there are any corners to be cut, or how to cut them.  Educate yourself, and follow your gut.
  • March 13 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Sheila Barrett

Read More About Investing At My Blog

Decide if you want to flip the house or rent out long term.

Look at what you have to work with- plumbing intact, AC/furnace working etc.

Get estimates on what will need to be done. Allow extra for unseen problems and be prepared to deal with them.

Do the math- is the market strong enough to support the repairs you have invested and make a profit if you decide to flip? If you decide on a long term investment- how long will it be before you make a profit?

  • March 13 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I'll do my best to answer your question, but I have more questions for you.  So, first and most important is you must be represented by a Buyer's Agent that will look out for "Your interests" - not the sellers' interest.

Are you asking about residential properties, apartment buildings, or commercial property?  The "type" of property should also be a concern when you get your "buyers agent". 

Any offer you make on any property should be contingent upon inspections.  Those inspection will be a buyer cost, but inspections are a MUST for any purchase. 

  • March 13 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for downeast
Bring one or two experienced builders onto the property for an estimate of the cost involved in the rehab. Make sure you leave enough room in the purchase price for a couple of surprises (at least 10%) If you do not have experience with rehabbing yourself, make sure to team up with a trustworthy builder. Do not rely too much on the standard "home inspection" as they explicitly do not include hidden conditions.
Good luck!
  • March 13 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.