In real estate investing there are times when you may buy a house that you decide you’d rather sell than fix and rent. Put the word out to other investors and one may just be glad to take it off your hands.

House Buyers – Azle Texas: Buying a house for a cheap price and fixing it up sounded like a great idea. You may have bought one of the many homes on the market cheap with every intention of rehabbing it and then reselling it or renting it out for awhile. While this is a common way for people to begin dabbling in real estate investment, for those who have never done it, there may be more complications than you realized.

Buying a house for a cheap price and fixing it up sounded like a great idea. You may have bought one of the many homes on the market cheap with every intention of rehabbing it and then reselling it or renting it out for awhile.

The repairs may be far more complicated than you estimated and will end up costing you nearly all of the profit you could stand to make. The trouble you have to go through to fix the house before you can rent it is more than you may have bargained for. Perhaps the city requires certain materials for the new roof you planned to put on. The gas lines must be replaced when the new owner, which is you, takes over and wants to rent the house out. Sometimes requirements for rental units are stricter than what you would need to do if you planned on living in the house yourself. These can be details you really wished you had known about before purchasing property.

Rehab requirements for investment property should ideally be calculated before purchase as part of the cost and can therefore provide an accurate accounting of how much profit is possible. Seasoned investors know costs of repair and building codes and use that knowledge to assess their costs of each potential investment property. Without that experience, you may have gotten in over your head this time. Perhaps you bought a house outside of your usual investment territory and have run into different building codes than you are accustomed to dealing with.

  • The trouble you have to go through to fix the house before you can rent it is more than you may have bargained for.
  • Sometimes requirements for rental units are stricter than what you would need to do if you planned on living in the house yourself.
  • You can always sell your investment to another real estate investor.

Don’t worry about making this mistake early in your investment dealings, or even in the case of a purchase that had hidden costs and you need to get rid of it quickly. You can always sell your investment to another real estate investor. Regrets can and do occur in this business, but it seems there is always someone who would be happy to take these properties off your hands.

Real estate investment is a great way to make money and provide for your future security, but there are many factors that can sneak up on you, leaving you with property that you know you must sell off before it ends up costing you too much money.

Filed under: House Selling