Ring. “Hello, this is Charles.” “Hi Charles, this is John, I am a real estate investor.” “How many properties do you have, John.” “None, but I have been watching the market for years.”
John is not a real estate investor. He is a real estate watcher. Nothing wrong with that but many people enter the New Year with aspirations of buying an investment property and never do. The New Year’s Resolution has no mercy.
Every investor has a different strategy. For us, it is the single family unit in close-in neighborhoods. Our goal is to find a home that needs little or no work to be in “renter condition.” Something around a B, B- on the scale of livability- we have no interest in being slum lords. When it comes time to sell it, we’ll remodel it to A condition.
If you buy a trashed house to put a renter in, you’re going to have to spend a lot to place the tenant and then through wear and tear (if not outright damage) you’re going to have to do a lot of the work again when it comes time to sell. If the house is not in solid shape, you’re going to have to make repairs on the tenant’s schedule. You can’t just leave the door unlocked for the contractor to take their time to get over there.
Buy a solid house, in a market where the neighborhood has good appreciation possibilities and that is not to inconvenient to you.