Buying an investment property in New York is a great idea. However, there are some things you DON’T want the property to have. Keep reading to find out what they are!
Purchasing an investment property in New York is an excellent idea for many reasons. It can help you add income and build wealth much more quickly than simply saving up your money from a standard job. Real estate investment, when done correctly, can be very hands-off, making it a huge draw for many people. That said, not every property will be a good investment. Below, we discuss just a few of the things you DON’T want your New York investment property to have.
When you buy an investment property in New York, your tenants should be the only ones living there. There isn’t a tenant anywhere that wants to rent a house infested with mice, roaches, or termites. Even if you call in a pest control company, it may be too late. While you will be able to have them removed, you won’t be able to quickly undo the damage that has been done. Pests are more than just a nuisance. They can cause structural damage to your property that may snowball into very expensive repairs. When looking for an investment property in New York, make sure it is free from any sort of unwanted guests. Not only will they cause damage, but they will deter you from finding the high-quality tenants you are striving for.
You can have a wonderful house, but if the people next door are a nuisance, your perfect property can turn into a nightmare fast. Before you buy an investment property in New York, take a look at who is living in the neighborhood. Try to see who is living next door and even down the street. Don’t be afraid to introduce yourself and say hello if you see a neighbor out and about. Not only will you be able to see who is living there, but they may be able to give you the scoop on the neighborhood. Plus, they will probably be just as likely to want to meet you and see who may potentially be moving into their neighborhood. You might want to drive the neighborhood at night to make sure things appear quiet and safe.
Lots of Repairs
Some people love a good fixer-upper. TV can make the process seem wonderful, lucrative, and easy. That said, the major home renovations should be left to the pros. A repair or two is fine, but once you start making a long list or there are larger repairs that need to be done, the property can end up costing you more than it’s worth. Aside from the repair costs, you will have to keep up with the holding costs and maintenance for the property. Things like the mortgage and utilities will all be on you. Meanwhile, you won’t be collecting any income from a vacant property. Buying an investment property that requires many repairs can pay off in certain situations, but in others, it is incredibly risky.
Water damage often leads to a number of other problems, many of which you can’t see. Water can damage wood, drywall, and even the foundation of your home. When looking for an investment property in New York, look for obvious signs of water damage such as stains on the ceiling or wall. Mold is another major concern when there has been water damage to the house. Be sure to have a specialist come check out the home before buying if there has been any sort of water damage to the house you wish to purchase.
Before you purchase your investment property in New York, find out how often and for how long the property has been vacant over the past few years. Ideally, you don’t want to own a property where tenants come and go. This will raise your vacancy rate and cost you money in the process. The property you invest in should be in-demand, with a wide variety of tenants finding appeal. It doesn’t make sense to buy an investment property if nobody wants to live there. When buying an investment property in New York, look for a place that will attract tenants on a long-term basis. You can also look for available investment properties that already have long-term, high-quality tenants. However, if an investor is selling with quality tenants in place, it is important to ask why.
There are many things you will want to avoid when buying a house in New York. Not every house will make a good investment, so make sure to do your homework before making a purchase. You don’t want to find yourself stuck with an investment property that only costs you money.