Below are the top 5 things to avoid when shopping for a rental investment property.
In purchasing a rental investment property, there is one thing you can’t conrol and that is, picking the neighbors. This is true no matter if the home is in a private neighborhood or a resort community. Before buying any property, visit the neighborhood both during the day as well as at night. Do some research by asking yourself the following questions: Are there other vacation rentals in the area? Do the neighbors play loud music in the middle of the night? Is the community a party-city? Are their regular visits by police in the area? Most activity comes to light at night, so know the area before making an investment purchase.
Be aware of the foundation of the home. Millions of problems can arise under the house that go unnoticed until it is too late. An issue with the foundation means very pricy repairs. You can have a professional inspect the home or you can do a quick examination. How? Below is a simple inspection list anyone can do.
Keep an eye out for these common signs of a foundation issue.
- Cracks in the foundation
- Foundation sinking or buckling
- Doors that stick or don’t easily open and close,
- Gaps around window frames.
Many problems can arise from shared spaces such as driveways and walls. These can include complaints of loud noises, overlapping parking spaces, & overflowing occupants of a home just to name a few. While some pet-peeves are undeniably a valid concern, others can be without basis. By being aware, you can avoid future potential issues. If you foresee a problem due to shared spaces, just skip it & keep looking. It will save you a headache later.
The primary purpose of an HOA is to manage a neighborhood’s common areas such as roads, parks, & pools. Be prepared to pay fees if you are buying a home managed by HOA. Depending on the neighborhood, homeowners can expect to pay up to $10,000 a year just on HOA dues alone. Do some research about these fees and decide whether they are worth the price before purchasing a home.
Find out the local zoning rules and regulations in the neighborhood. If you are planning to make any, yes, ANY changes to the home including the landscape, you need to find out what is allowed. Is there new construction in the neighborhood? What does the city plan to do in the area? Are there any long term projects the government is planning on moving forward with? If you want to avoid purchasing a home that can eventually be blocked by a 2-3 level office building, check the zoning rules & plans.
Keep these things in mind & you can save time and money!