So the thought may have occurred to purchase yourself a second home to use as an investment property. Good choice. Real estate is making people great amounts of money so why not grab a hold of your chunk of the pie right? Do be careful however because this is something that will require some planning on your part. Investing in a home is a great way to build your equity and overall worth. Its also give you chance to climb the property ladder a little faster. The big question is, will you flip the home, or take on the mantle of landlord?
This decision will define the future of the home as with flipping there are likely quite a few renovations and such that you will do to increase the home's asking value. Whereas with renting the home, depending on the home's quality there will hopefully only be minor fixes that are necessary.
Taking a look at the average home flip, if you think about all the TV shows on this topic then what can be done to a home in preparation for a flip can be quite an expense and take a fair amount of time or grief. Be reasonable about your expectations for renovations. Never lose sight of the fact that your fixes have to justify the increased asking price or savvy buyers will lose interest quickly. Also try not to be too outrageous with the design or color scheme as this too can alienate a sector of the buying market. Make sure that all the work is done to code and decorate appropriately for the space.
If you have chosen to be a landlord then your path is a little different. If any renos are to be done, try to ensure that they are well done and simple and will appeal to your average renter. If you are thoughtful about your improvements and create a good and clean space where everything works properly you should be able to attract a higher class of renter. Of course the ideal situation would be long-term renters who are quiet and always pay their rent on time. However it usually take some time to find these kind of renters, so in the meantime be prepared that you may have to evict someone at some time. Not an easy thing to do but it is sometimes necessary. Try to arrange it so that the rent for the month pays off the mortgage, it's a great way to accrue equity.
