Before you sign the dotted line, make sure you ask yourself “How could I have made this deal better?” So many investors make the mistake of signing the line so quickly before realizing they could be either buying a property that will be hard to rent or they could be making much more money.
You really have to stop and think before you buy smaller homes if you live in an area where bigger homes are available. These homes seem easier to invest in but they aren’t as appealing to renters or buyers. Here are the reasons why:
- They have less square footage.
- They have smaller rooms
- The families that would be able to live in that tiny space is very limited.
- They are older and will likely need repair.
- Many of them have inadequate insulation and need new air condition unit.
- It’s hard to fit queen or king beds in the small bedrooms.
- Many of them haven’t been kept up well.
I recommend going to Open Houses to see what the insides really look like and why they’re renting or selling quickly. A more seasoned real estate investor keeps the renter in mind. They don’t just buy the first thing they see. Sitting back and thinking about how the deal can be better instead of impulse buying will be your key to success.
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