When you purchase a residential or commercial property, the idea is to make any changes that you need to make while keeping the project in the black. This can be a real challenge if you haven’t planned carefully when purchasing the property. Here are a few things you can do to ensure that you can keep your project in the black:
Get an inspection. Getting an inspection may seem like a waste of money, but it can point out issues with the home that you may not have even considered. Professional inspectors are trained to look at every system of the home, including roofs, electrical and foundations. While they may not be able to estimate the costs to repair these areas, they can let you know where the problems in a home are and what can be done to rectify the situation in the most economical way.
Find out of point of sale inspections are necessary. In many cities, point of sale inspections are required. City inspectors come in and tell you what needs to be fixed and then recommend which contractors are approved to use in their area. As you can imagine, these inspections can add quite a bit of costs to your project as they are normally the responsibility of the buyer. Before you negotiate a deal with the Executor, take time to call the local building department and find out if they have a point of sale requirement in that area.
Call a couple contractors. Before you make a deal on a property that you know will require significant work, take the time to get several estimates from
contractors that you trust. Having more than one quote on your project will give you a way to average the cost to make the repairs. This information can be critical in the amount of money that you offer to the Executor and can be a power negotiating tool in coming to an agreement on a price.
Investigate taxes and insurance costs. Real estate taxes and insurance costs will be with you for the entire time you own the property. Take a moment to get those figures so you know what your monthly outlay will be.
Doing a little research can help you to keep your newest project in the black so you can profit.