So exactly what is "Intelligent Investing?" Well, simply put it is investing will a well thought out plan of action and the preparation for any pitfalls that might occur. In different terms, it could be put as "knowing your market." When considering investment in the real estate market a good, detailed plan is an absolute necessity as this is a market that is in constant fluctuation and a smart investor must learn to anticipate these fluctuations in order to fully take advantage of the market.
This anticipation is extremely important if you are planning on flipping homes. Not so much if your plan is for long-term rental properties, although it is still important during the purchase stage. If you are planning on flipping homes as an investment be sure to get familiar with the ups and downs of the local market so that you are able to purchase at a lower price.
Once you have a home, its time to renovate. Typically, investors plan to purchase, renovate then sell. The improvements are necessary to justify the increased asking price that is really the only way to make this type of investing worthwhile. The question of what renovations need to be made relies purely on the property in question. When you look at prospective homes, try to think of them in terms of the expenditure that you will have to make to justify your desired profit. Consult with your realtor to make sure that your projected asking price is reasonable for the home and area as well.
If you are planning on making your investment a long-term rental then make sure that the property is properly set up to take care of the renters needs. Properties will a full suite of appliances and access to laundry are definitely more attractive to renters. Also it is no secret that newly appointed suites will generate a higher monthly profit than ones that are old and unkempt. Being a landlord can be a difficult job full of unpleasant decisions at some times, but his can be avoided by being choosy during the application process. Never be hesitant to require and check references. The long-term profitability of your property hinges on good renters that always pay their bills and respect your property.
