If you are browsing homes for sale that you can live in for a while, and then rent out and keep as an investment property later on, you have to make sure you are smart about it. You want to buy a home that you can make more valuable over time, not something that is likely to decrease in value as you own it. Here are a few of the things you want to look for when choosing a property.
Increase Value Potential
The amount that the home value can increase will depend on the size of the lot, the current materials used inside the house, and the area where the home is. Look for homes that have the following features:
- In a growing area where the school district is desired
- Space to add a patio or outdoor entertaining area
- An unfinished basement or recreation space that can add usable living area to the property
- Outdated materials that are affordable to replace to make a big impact
These different features are going to allow you to add value to the property after you buy it, and they will make the property more desirable when you go to rent it out or sell it.
15 Year Mortgage Payments
The price point of the house and how much you can put down will determine if a bank will approve you for a 15 year mortgage or not. If you can get approved for a 15 year mortgage you'll be able to pay the house balance down quickly and avoid a lot of fees from interest over time. Talk with a mortgage broker so you know how much you should aim to spend if you want to get approved for a 15 year mortgage.
Good Location
Renters often want to be in a location where they can easily get to work, stores, and restaurants, so make sure that you pick a property that is going to be appealing to everyone. It doesn't have to be in the heart of a downtown area, but within a short distance of amenities and things that the renter would need to go out for.
These are some tips you want to follow if you're looking for homes for sale that you can fix up and sell or rent out. Talk with the real estate experts to find the perfect house that you can make an offer on.
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