Before you naively buy a run-down property, it's critical that you do your homework and thoroughly grasp how much it'll cost you.
If you want to produce cash flow from your investment, be sure that the rental revenue you can realistically earn covers the costs of your mortgage, insurance, and taxes.
When purchasing a rental property, always assume that your tenants will not take as excellent care of it as you would. Purchase long-lasting but fairly cost improvements.
Real estate commissions alone can eat away 6% of your income when selling a home. This is in addition to any taxes and fees associated with your sale.
Don't go after properties in a hot market, expecting they'll continue to rise in value. Instead, be patient and await the appropriate opportunity.
Seller disclosures are more than just required documentation. Disclosures will show you what repairs or difficulties a property has had in the past that may reoccur in the future.
Always exercise caution when investing. When people disagree on what they want or how a contract is drafted, it can lead to misunderstandings and even potential legal concerns.
Examine any substantial repairs or postponed maintenance, especially for major items such as plumbing, electrical, foundations, and roofs.