With interest rates at historic lows and many foreclosed homes on the market, now is a great time to look for investment property. If you are looking to make a little extra money on the side through rent or if you are looking to buy a foreclosed home, do a little work, and then flip it for a profit, there are many tools online which can help you get started.
First, if you don’t have the cash on hand, get pre-approved for a loan from a bank or financial institution. Once you know your budget, find a website that lists foreclosure properties or find a real estate agent who specializes in foreclosed homes. If you find a property you like, jump on it. If you are buying a conventional home, pre-approval is still a good idea so you know exactly what you have to spend and what fits in your budget. This will help narrow down property and save you some time.
If buying a foreclosed home seems too risky for investment properties, there are still great deals with conventional homes. The market is beginning to tick back up, but home prices are still rather low, especially compared to just a few years ago. If you have the conventional 20% to put down, you will find many properties which fit your criteria.
If you look to rent, look for homes with amenities within walking distance. Since many renters are young people, they likely want to have bars or restaurants nearby. This makes the property more desirable. Also, make sure the unit is on a public transportation line. If the person looking to rent has financial troubles, this could make the property a better fit.
If you are looking for a home to flip, learn to make repairs yourself or go into a partnership with a handyman. Often, investment properties will have repairs that need to be made or rooms that need to be updated. If you or a business partner can make those changes yourselves, it will save you a lot of money and make the property that much more valuable.