Home Remodeling Basics: Real Estate Investing Tips
One of the factors that you must consider is whether or not you need to remodel or make improvements to the investment property and whether or not you are going to make the improvements yourself or hire outside labor.
Buying an investment property that has already been remodeled and updated will most likely cost you the premium price when you buy. That means flipping the property or resell the house is most probably not going to be very profitable. However, the upside of buying a remodeled property is that you will be able to rent it almost immediately.
Investing in a property that needs to be updated takes time and effort, so before you make the purchase you should figure out what improvements and labor are required to be able to flip the investment property for a profit or to be able to rent the property quickly for a steady monthly income.
Make sure you figure in how many weeks or months will need to get the property ready to rent out or to sell because time is money with investment properties, especially when you have a monthly mortgage payment to make on a property that is not yet bringing in any income.