In today's market, investing in rentals or other long term housing may not be a smart decision. However, there are plenty of homes out there in need of minor TLC that could easily turn you a quick profit as long as they have the following characteristics.

1. Look for a three or four bedroom home with a good foundation, without any need for major renovation other than cosmetic fix-up. Try and avoid two-bedroom homes as they will be harder to sell in today's market.

2. Location is key. You want to ensure the property you buy isn't negatively affected by the surrounding area. You can turn the ugliest home into an eye charmer, but you can't change things like crime rate, noise pollution, and run-down neighborhoods.

3. You should never put a nickel into a house if you don't plan on getting at least a dime out of it. Improvements like fresh paint inside and/or out, new light fixtures, new carpet and/or flooring, and landscaping are relatively inexpensive when you consider the amount of return you will net from these improvements. However, if you need to bring in licensed contractor to re-wire the house, install new plumbing, repair the foundation, etc. then you'll quickly be setting yourself up to take a loss.

4. Purchase a home at least 25-30% below market value of comparable homes in good condition. Your goal is to buy the home, fix it up as quickly as possible, and then sell it quickly. In order to do that, you may need to put the home back on the market slightly under what others are offing in order to sell in today's market. If you buy it for only 10% under, you may end up breaking even on the deal, which would just be a waste of time. If the seller is unwilling to discount the price, then start looking for another house.

5. Find a motivated seller. Many sellers need to sell their home rather quickly due to a job transfer, pending foreclosure, divorce, etc.

6. Make sure the seller or tenant will vacate immediately upon transfer of title. Trying to fix up a home while someone is living in it is extremely difficult.

7. Home is within reasonable driving distance. You will want to visit the property often while the work is being done. Workers tend to start slacking off if you don't inspect the property frequently and ensure they are doing the work.

8. Good demand from renters and/or buyers. You only want to buy where local employment and economic conditions are good. If more people are moving out of an area than into it, it's probably not a good idea to buy there. Also, have a back-up plan. If for some unseen reason you are unable to sell the property after the repairs are done, it will be more beneficial to you if you already determined that you can rent the property fairly quickly without taking a monthly loss. Otherwise you may find yourself taking a loss just to be rid of the property.

Related Posts

Beginner Tips for the Real Estate Investor

Understanding Local Markets

Should you have any questions or need further information, please don't hesitate to contact me Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
www.SellingNorthernNV.com
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521