Questions to Ask Before Making Foreclosure Investments
Monday, October 08
If you are new to home ownership or real estate investment, then you
might not know the best questions to ask before you invest in distressed
property, or in any property at all. The first step is to find an
excellent real estate inspector, such as one of the experts employed by
Memphis Invest. Your Memphis Invest investment property advisers will
help you get all of the information that you need before making
foreclosure investments. Still, sometimes it helps to know what
questions to ask in advance.
Questions to Ask About Foreclosure Investments
1. What type of roof does the property have? How old is the roof?
Roof longevity can vary widely from 15 years to 50 years, depending on the type of roof and roof maintenance. An asphalt roof that has years' worth of fallen leaf detritus will not last nearly as long as a well-maintained metal roof, for example. It is a good idea to choose a property with a newer roof that is in good condition. Your property management company can help you continue to maintain the roof by keeping the gutters cleaned and repairing storm damage. Minor roof repairs shortly after a problem occurs are usually quite affordable, whereas putting a new roof on a home can be quite expensive and is not something that you probably want to invest in for your foreclosure investments.
2. Does the property come with appliances?
If the property doesn't come with appliances such as a refrigerator, washing machine, and dryer, then you will need to be prepared to invest in those initial expenses up front. If you do need to purchase appliances for the home, shop around and read reviews before you make a purchase. It is a good idea to choose long-lasting, durable appliances that are also energy efficient. Fortunately, the standard freezer-on-top, refrigerator-on-bottom model of refrigerator is both highly efficient and largely inexpensive compared to many other designs.
3. Does the home have any hidden hazards?
In addition to the more obvious strengths and weaknesses of a property, you will want to be sure that your home inspector looks under the surface of your foreclosure investments. Is the wiring up to code? How does the plumbing look? Is the house likely to have problems with mold? Are there any major problems that are likely to arise in the next ten years?
The bottom line is that if you have a good home inspector, you can be more confident in your investment. If you purchase a well-maintained property and ask your investment property advisers to recommend minor renovations to improve the property's condition, you can rent out an excellent home to your tenants and make a larger return on your investment over the long term!
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