Buying a Home That Was a Rental
Caution is always Wise When Buying a Rental.
Sometimes rental properties sell for less than other homes in the neighborhood because they are often in disrepair. This can also be an advantage if you are an investor or one who is a handyman and can make repairs, paint or do other things to improve the property after purchase.
1. If you decide to purchase a home or condo that is rented, then you want to find out (if you can) whether the renter is corporative. When you visit the home, check to see if it has holes on the walls, broken windows or the cosmetic concerns.
2. Be sure to canvas the outside of the home and also preview the garage. Check for termite problems too.
3. Look in each room and see if there are exterior internet or tv cables running all over the place. These are issues you may have to remedy after you purchase the home.
4. Check out the insulation in the attic. Is there Asbestos in the attic. That could cost you a good sum to have it removed.
5. Chat with the neighbors. They can quickly tell you things about the neighborhood.
6. Have a home inspector complete a report, if you do decide to purchase the home, The results could help you re-negotiate the purchase price should there be major issues with the home.
If your looking to invest in 2 to 4 units rental income, give us a call LendPlus Financial. We have staff members who specialize in rental income property and can help you run the numbers.