Buying houses as investments will take time in order to find the right house at the right price. There are many ways to buy houses below market value. Foreclosed houses are generally sold at less than market value and can be purchased through an estate agent. Since the prices are generally lower, the down payments needed will be less. There are also auction sales. These can vary and can be done at the site of the house or another location, with multiple homes being put up for auction. Make sure that you inspect the auction house before the auction date. Also do research on the current market value of the house and set a limit on the highest amount you are willing to bid for it.
1. Make connections with other investors, bankers and county clerks who may be able to give you tips when good deals on houses come up.
Find local foreclosures, tax sale homes and auctions. This will require some research on your part. A Realtor can help you find foreclosed homes in the area you want to buy the investment property. Some will even sell with no money down. Tax sale auction homes can be found by searching the county website concerning property taxes. Foreclosure auctions can also be found by doing a general search on the Internet of the city and state in which you would like to buy the property.
2. If you will need to get a mortgage you can get preapproved mortgage price limit by a bank so you know exactly what your spending limit is.
Calculate how much you can actually afford. If you will need to take out a loan, check your credit score first. If there are errors or if it is low then you will need to work on bring up your credit score before buying a home so you can get a better interest rate. Also make sure that you have money left over for any needed repairs on the house. Figure out how much you can afford to put down, amount needed for repairs, and if you finance how much you can realistically afford on monthly mortgage payments.
3. Make sure that you also like the community that the house is in.
Inspect any houses that you are considering bidding on or purchasing. Take a notepad and camera with you and look at every detail of the house structure. Look for cracks, anything broken, missing appliances, drafts, and anything else that might need repairs or upgrades.
4. If you do not live close to the investment house, consider hiring a manager.
Contact a contractor who does repairs. Ask them for price quotes on the repairs. The pictures you take can help with getting a more accurate quote. If you plan on doing the repairs yourself then make a list of all the needed materials for repairs and get the prices at a local hardware store.
5. Consider buying a condo if you don’t want to deal with yard maintenance.
Calculate how much it would take to own the house you are considering buying. Find out how much the property taxes, insurance and average utility costs will be.
6. Read all the rules and procedures for an auction before attending.
Attend a bidding session for the houses you are interesting in buying or contact the real estate agent if the house is not being auctioned off. Remember to stay within the price limits that you set before attending the auction. If you are buying from a bank or Realtor try making a lower offer.
7. Many lawyers will give you a free first consultation.
Contact a lawyer to give you a consultation. They can help you write contracts that will protect you, as well as give advice on what should be done to stay with in the limits of the law regarding the property if you plan on renting it out.
If you plan to use the house as a vacation rental, advertise both online and in print ads.