After months of searching, you found what you feel could be a great investment property. Because you never invested in real estate before, you may not know the signs of a bad purchase.
Millionacres explains several warnings signs for investment real estate. Know when to proceed with a buy and when to take your time and money elsewhere.
Signs of water damage and mold
During a walkthrough, you may notice signs of water damage or mold. If so, investigate further to see how much time and money you may have to invest to resolve the issue. If you must take care of the matter yourself, you could need to make some major repairs. Check all bathrooms, kitchens, countertops and the roof. The seller may try to conceal water damage or mold by painting over it.
You cannot see inside
Sellers rarely let potential buyers not see the inside of a property. If you cannot go inside the investment space, you may want to cut your losses and keep looking. The same applies if you cannot see a specific room on the property. Always walk through a property from top to bottom before making an offer.
Terrible DIY fixes
The seller may have an amateur fix for a maintenance issue or something similar. If you notice a fix, temporary or otherwise, that does not look like a professional handle it, you could invest a headache. Not only may you have you pay a professional to do the job correctly, but you may also have to pay to take care of extra damage created by the DIY repair.
Exercise caution with every investment property you see. Trusting your gut and an experienced professional’s advice could help pave the way to peace of mind.