Finding a good investment property is definitely one of the hottest trends in passive income. But, it is not as easy as it looks on television, no matter what those cable TV shows may try to convince you. There are steps that you need to take to make sure that you are getting a property that will earn you money and not make you sink more and more into it until you can’t see the light of day. Here’s what you need to look for in finding the right property (https://www.totalmortgage.com/blog/housing-market-2/money-pit-or-money-maker-how-to-invest-in-the-right-property/32513).
Know your limits—This goes two-fold. First, know exactly what you can afford. When you are taking into consideration how much a property will cost, be sure you accurately estimate how much it will cost to do the renovations. Also, make sure that the renovations are realistic. If it would just be cheaper to demolish the house and start from scratch, it’s a good idea to just walk away.
Find the right spot—Before you even look at houses, consider the location that they are located in. You want a house in a good neighborhood with the best local schools and other amenities. This will go a long way in determining if you will be able to get your money back on a purchase.
Get an inspection—Yes, the cosmetic aspects of a property look nice. But it’s more important to hire an inspector who will dig around underneath the house and check out things like the foundation as well as the plumbing and wiring. That’s where your real money woes can come from.