When buying an investment property, renovated properties for sale might sound like a great idea. However, is that really the case?
Well, I guess there is no right answer to that. In fact, there are only the facts and the rest is dependent upon your own decision and finances as well.
Buying a home to rent is perhaps one of the best investment ideas there is. And a Renovated Property for sale might be a good option for that purpose for many reasons.
• Minimal work upon purchase and during ownership since the previous owner has renovated it and it should only require light maintenance over next few years.
• Easy transition. With a house that already had all the work done, you can list your property for rent right away. This, of course, allows you to start receiving a rental income from the property as soon as possible.
• Easy financing. There is nothing worse than being rejected for a montage application due to the lack of guarantees.
Thus, renovated properties for sale are one of the most guaranteed real estate investment strategies in the market. Unlike a fixer-upper which requires remodeling and maintenance, a renovated home has a fixed property value. Mortgage lenders tend to see this type of investment property as a low-risk investment when compared to a property you plan to renovate yourself.
• A renovated home will likely be more expensive than a fixer-upper. The way it works is that some real estate investors buy homes that need remodeling and maintenance. They buy it for cheap, renovate it, and then sell it for a higher price for a renovated house. So, what is included in the price? The renovation cost, appreciation and profit margin.
• Unless you know what you are doing, it is easy to fall victim to fraud. Many so-called “investors” only perform minor changes to the property and then claim they have done major remodeling work. Therefore, you must be careful to avoid these types of real estate investment scams. This means knowing how to inspect the investment property to ensure that they’ve done what they said they have.
• Third, renovated properties might not be what you want them to be. We all have different tastes when it comes to design. So, with a renovated house, you can expect it to reflect its previous owner’s taste.
• Verify municipal permits and formal documentation related to the renovations
• Verify contractor credibility and municipal license
• Get the property inspected by a professional home inspector
If you take all the above into account, renovated homes can be a great real estate investment. However, this does not mean that you don’t need to perform some profitability calculations as well. So, why don’t you check out Mashvisor’s investment property calculator? This amazing tool will lay it all out for you. Not only will you be able to perform investment property analysis, but you can also perform neighborhood analysis and most definitely find rental comps to which you can compare the property.
I fill find renovated properties that bring true value of the home to the buyer
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS® System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.'