Christina El Moussa of HGTV’s ‘Flip or Flop” has advice for investment property buyers. First, decide if you are flipping it or renting it. Flipping will require more upfront cash than renting. However, if done properly, a flip will provide a faster profit than a rental. Be sure to research similar properties in the area to get an idea of the current rental rates and purchase prices. Hire a professional home inspector to uncover any hidden problems such as mold or lead. Finally, be aware of all of your costs, so you know exactly what the property will cost you if you don’t sell or rent it right away.
- Investment property buyers need to be prepared financially to make the purchase as regular mortgages may not always be available to them.
- Understanding the local real estate market, for both sales and rentals, is critical towards investment real estate success.
- Having a realistic and accurate budget for renovations is absolutely crucial in real estate investment – there is no easier way to lose your investment than to underestimate your costs.
“Renting and flipping investment properties require different strategies, so it’s important to know which method you intend to pursue from the beginning.”