|
Buy, Rehab, Hold - Will It Work for You? |
By Kevin Curtis
 In today's real estate market, property values are an absolute steal for investors. For this reason, many people are looking to buy new properties, fix them up and rent them properties out; also known as holding. Before you jump into your new career as a landlord, be sure you know what the job involves.
So, you know all about finding a gem of a deal in the real estate world. From foreclosures to fixer-uppers, finding investment properties is your forte. That's a wonderful advantage to have, especially since this economy has made investment opportunities in real properties ripe for the picking. Minnesota real estate, Minneapolis real estate in particular, is full of homes with amazing income potential.
However, do you have what it takes to bring plumbing up to code, hang new drywall, paint cathedral ceilings and rip out moldy baseboards? If you can't do it all yourself, don't feel like you're alone. If that's the case, just be prepared to either find an all-around great Mr. or Ms. Fix It or a list of specialized contractors that will help you out.
Nothing quite breaks a budget like unexpected expenses during the rehab stage. Get estimates and work with people you know and trust if at all possible. What seems like a jewel of a fixer-upper may quickly turn into the biggest black hole for money that you have ever encountered. Unexpected repair bills showing up on your doorstep day after have a way of bleeding you dry.
Another aspect of the rehab and rent mentality that you need to mull over is the idea of being a landlord. It sounds simple enough at first. You'll buy a property and happy tenants will immediately show up, rent your property and you won't hear a peep from them until their lease is up. At which time they will immediately resign and your income stream will continue, blissfully undisturbed.
Sadly, it's almost never that easy in the real world for a landlord. Unless you're prepared to shovel snow, fix a clogged drain and change kitchen light fixtures in your spare time, you will either need a handyman, property management firm or possibly both. Consider hiring their services to minimize the drain on your time that tenants so often cause.
In the world of Minneapolis real estate rentals, having a snow removal service at your disposal is an absolute necessity. In other areas of the country, different concerns are a priority. A property management team takes a large chunk of the worry off your shoulders when it comes to tenants and toilets. However, they also take with them a large chunk of your revenue. Weigh your options carefully and pick the ones that best fit your resources; both from a time and a financial standpoint.
Holding your properties after you fix them up is not for everyone. In the Minneapolis real estate market, for example, many investors are opting to rehab and sell instead of taking on the responsibility of tenants. The choice is yours, but either way, ensure you take advantage of the amazing real estate opportunities available on the market today.
Kevin Curtis is a licensed agent with RE/MAX Advantage Plus. He is The Minnesota Real Estate Team's 2007 Agent of the Year. Kevin and his team provide great service and ongoing insights into the Minnesota Real Estate market at
Foreclosure
|
No Comments.
