Property Investments: Six House Hunting Deal Breakers in Buying Real Estate Property

“Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.” -Robert T. Kiyosaki

So, you have decided to try your hand at real estate investments–what is next? Well, for novices who are new to the business, the prospect of finally owning your first investment property can feel exciting and rather thrilling. However, while your enthusiasm is admirable, you should not allow that to cloud your better judgment and fall prey to bad deals and bargains. A noteworthy sentiment to keep in mind in this line of work is that if it is too good to be true, it probably is.

In this regard, one thing you should look out for–whether you are buying empire east condos or a series of residential properties is to make yourself aware of the deal breakers that can potentially sink a deal. Remember, just because it looked like a promising investment both on paper and in reality does not mean it would automatically pay off. Do not let the impressive features prevent you from looking deeper and asking salient questions. In any case, here are some of those deal breakers you should never overlook:

1. Water pressure

It is always a good idea to turn on the faucets, run the water in the bathroom, laundry and kitchen as well as flush the toilets in your perusal of a prospective property. This will let you know if the property has good water pressure. Furthermore, it gives you an idea whether or not the sinks can drain water adequately.

2. Flood zone

If your prospective property has been flooded anytime in the recent months, you might want to reconsider your offer and choose someplace else. Weather is highly unpredictable nowadays and consequently, there are bouts of monsoons at sporadic times of the year–regardless of whether it is the rainy season or not. In this regard, it is best to avoid properties that are in high-risk flood zones as this would often mean a significant increase in insurance costs. Furthermore, you would have a harder time finding prospective homebuyers for that particular property in the future.

3. Electrical Wiring

You want to be sure that the potential property you are looking to buy would not be a safety hazard. With this in mind, you should check if the property’s switches and outlets function properly and if they do not pose a safety hazard. Steer clear from dated and obsolete electrical systems as replacing them can be incredibly pricey.

4. Roof

Apart from checking the roof for leaks, always make it a point to ask the seller how old the roof is. Well-maintained roofs are typically free from plants and weeds growing in them and does not have three layers of roofing and gutters. Moreover, any signs of rusting would be minimal, if not, nonexistent. Check the roof if there are any cracked, missing or sliding tiles, damage, leaks and rust.

5. Foul Smell

Take it as a warning sign if you smell nothing but Febreeze in the home you are perusing. It might be that there are old smells that the home seller is trying to conceal. To be sure, take a big whiff of the air both inside and outside the house. If you notice anything odd, you might want to ask the home seller what it is.

6. History

It is always a good idea to know your prospective property’s historical background. Ask the seller how often repairs were done and why they were required in the first place. Furthermore, try to have an idea of what the previous occupants of the house were like and how they have maintained their home. Ask about the neighborhood’s general crime report and whether or not there have been any deaths in the house or in the general vicinity.