To be successful as an investor is to make the numbers add up to the highest return on your investment dollar in passive income. Done right,
investing can be very profitable and provide security for your
retirement. In addition, diversification offers you a well-balanced
portfolio, building in a hedge against inflation. You should have
investments from every market sector, which brings us to single-family
homes. Read on as we explore five of the red flags to look for when
buying a single-family home for investment in IL.
Location
If you don’t get a good feeling about the property’s surroundings, this is one of the red flags to look for when buying a single-family
home for investment in IL. Even the best single-family home can’t
outweigh a bad neighborhood and affects property values, rental rates,
and issues with occupancy, damages, and crime. Unfortunately, new
investors often find the least expensive property available without
considering how the location can affect your cash flow, and the future
outlook can substantially influence the numbers. However, suppose you
are aware of city planning involving added improvements, and you notice
other recently rehabilitated properties. In that case, it may be worth
taking a deeper look at jumping into an investment in a location in the
early stages of revitalization.
Unpermitted Work
Homeowners often take shortcuts to save money, and avoiding permits for home improvements is one of the ways some choose to do so.
Unfortunately, this type of unpermitted work is a huge red flag to look
for when buying a single-family home for investment in IL. While you
could work with officials to approve the existing work after the fact,
often, it is required that you completely demolish the work and rebuild
under the proper permitting and building procedures.
Water Damage
Mold. Just the word is alarming, and where there is water damage, mold can be present. So when water signs are apparent, take heed of this
major red flag when buying a single-family home for investment in IL.
On the other hand, if recent work by a professional remediated the mold
issue, and there is documentation of this work, even though the owners
didn’t repair the damage, this puts a new light on the subject, and the
investment may be sound.
History
Regrettably, homes that go through foreclosure often feel the wrath of the owners who have lost their homes in that they do severe damage
before leaving the remains to the bank. If the history shows
foreclosures, this is another one of the red flags to look for when
buying a single-family home for investment in IL. Another issue with
properties that have undergone foreclosure is that they are often
abandoned and unkempt for a lengthy period. What may have started as a
minor issue with the roof, for example, is now a significant repair.
Pests
Signs of pests are red flags to look for when buying a single-family home for investment in IL. Because they hide in dark, difficult-to-reach
places, you will need to know the signs of animal or insect waste and
other small telltale signals, like entry spots, with which more
experienced investors are familiar.
Wouldn’t it be great to have someone working with you to help you watch out for these and all of the other red flags that investors like
you should look for when buying a single-family home for investment in
IL?
Why not call on the full-service team at Cardinal Creek Properties to help you? And don’t forget to ask about our current inventory of the
best single-family homes available in IL right now! Contact Cardinal Creek Properties today at (314) 467-8137.
