6 Things to Consider When Buying an Investment Property in Another State

gsbmonday
Dec 4, 2017
2 min read

6 Things to Consider When Buying an Investment Property in other States

December 3, 2017

By USA Realty Deals

If you’re thinking about doing property rehabs, this blog post will reveal 6 things to consider when executing an investment property rehab in another State – these could determine whether you succeed or struggle!

Rehabbing a property is a lot of fun. But there are pitfalls you’ll face as you acquire, rehab, and sell the property. This becomes even more challenging when you are in California but buying an investment property in Florida. If you’re not careful, these pitfalls could hurt your chances of a successful and profitable rehab! But we are here to help with 6 things to consider when executing an investment property rehab in another State…

6 things to consider when executing an investment property rehab in Another State

#1. What Do Your Buyers Want?

It’s easy to get caught up in choosing colors and selecting countertops but the most important thing to remember is that you’re ultimately rehabbing to sell, so make sure you select colors and decorations that buyers want to pay for. Base your investment on what upgrades and fixer uppers in your local city or state.

#2. Speed To Sale

Where a lot of rehabbers get off track is taking their time in different areas, perhaps only working a 6 hour day and then going home, or deciding to take the weekend to think about which countertop is the best one for the house. The sooner you sell, the sooner you make money. Period.

#3. Permits

Rehabbers need to work quickly to make money but municipal governments, who grant permits, do not tend to move very quickly. Should you keep working anyway? Should you wait until a permit comes through? We always advise that you remain compliant with local laws but this can be a challenge at times since cities can take a while to issue permits.

#4. Costs

Your budget, once realistically set, should be set in stone and every decision should be made with the budget in mind. One area that rehabbers get off track is in making many small decisions outside of the budget. Each decision on its own might not seem like a lot but those costs add up fast!

#5. Team

Some rehabbers choose to rehab properties themselves and others choose to use a team. A team adds costs to your budget but can get the rehab done quicker. But it’s more complicated than that because a team can also add scheduling challenges. If you want to have a successful rehab with a team, you need to master the skill of leadership.

#6. Marketing

The sooner you sell your rehabbed property, the better. Therefore, plan to do a lot of marketing regularly to get the most eyeballs possible on your property!

Summary

Planning to rehab a property? These are 6 things to consider when executing an investment property rehab in another state to ensure you stay on track and increase the likelihood of success.