If you want to get into the housing market, you have to be aware that this kind of market can be surprisingly tricky. You might think a rental property investment is amazing, only to realize all its many faults once you've purchased it. Do not fall into traps and do things that are bad for business. To help you out, there are five situations that you definitely should avoid once you get into the market. Best to be safe than sorry!
first When a rental property investment is too cheap to be true.
Do not be quick to buy up a property that appears quite expensive but is being sold at a very low price. You might think that you're doing something really smart by snapping it up before anyone else gets to it, but the truth is, the smarter thing to do is to do more research first before pulling out that checkbook. More often than not, expensive-looking properties that are being sold for cheap most likely have some facets that are very bad for business. It's quite possible that the property is or was tied up with certain illegalities. It's also quite possible that the features inside the property combine one gigantic health hazard. Always do your research before making a big move.
2nd When a rental property investment has changed owners often.
It's never a good sign when a property you're looking at has changed owners fairly often. If the house has been passed around once or twice every year, that's definitely a signal that that house is bad for business. Why is it treated so often? The only logical reason would be if there was something unsuitable or downright unpleasant about it. It does not matter if the house is being sold to you for a more than reasonable amount. If you've learned that nobody has been able to stick around with that property for more than a year, then steer clear of it! Do not become just one of its many hapless owners!
3rd When a rental property investment is difficult to commute to and from.
It does not matter if you plan to live on the property and use your own car to get around. The fact remains that a property that is barely accessible by transportation is just bad for business. Why? Because it will be harder for you to sell it when the need arises. Especially in this economy, when gas prices are skyrocketing like nobody's business, having a property you need to sell that is not easily accessible by bus or train can be a terrible problem. Look into the future when buying your property. If there is no chance that it can become more accessible in the next five years, ditch all plans to invest in it.
4th When a rental property is in a bad neighborhood.
No matter what you do, never, ever purchase property that is known to be part of a bad neighborhood. That's just bad for business, period. It really does not matter how nice the property is. It does not matter if it's already outfitted with top-of-the-line security gear! As long as that house is located in a neighborhood that most, if not all, people would consider a threat to a person's health and security, stay away from it. It would be better to get a less impressive house in a good neighborhood than an amazing property in a bad one. Imagine having to sell that house in the future! Would you be able to sell this property with a clear conscience if it was located somewhere that was not even safe?
5. When a rental property investment is badly ventilated.
It may sound terribly silly to you right now, but one thing you should definitely check for that could very well make or break your purchase of a property is how well ventilated it is. Imagine if you were a new homeowner, and you realized that the house you bought gets incredibly hot the second the sun comes out, or turns freezing cold once evening strikes? What if you realized that you could barely breathe in certain rooms of the house due to the humidity? No matter how beautiful that property is, if you're having a hard time just being able to stand the kind of air in your rooms, then that's a huge problem. Bad ventilation is bad for business when it comes to rental property investment, it does not get any simpler than that!
The above five situations are just some of the many opportunities that could turn out bad for business in the end. So, make sure that you do not do anything too drastic when it comes to dealing with rental property investment. The last thing you'd want to do is to be too hasty about your decisions. There are a lot of traps you can fall into, so it would be much better to watch your step!