4. Analyze the Finances
If you plan to obtain
outside financing, make sure you discuss this with the lender in advance. Some
financial institutions make real estate investing more difficult.
Make sure you have solid
estimates for the work you will need to complete. You will always run into
unexpected situations so account for a budget overrun in your project plan.
Account for the carrying
costs while you’re renovating the property. You will need to cover property
taxes, homeowner’s association dues, homeowner’s insurance, and the monthly
loan costs while you are renovating the property.
Make sure to obtain all
costs associated with selling the property once the project is complete. A good
Realtor will provide you with detailed closing cost information.