Thinking About an Investment Property? 3 Reasons to Schedule a Condition Assessment
Investment properties can be big-time money-makers, especially if you have more than one property that you manage at one time. Owning a four-plex or apartment building can be particularly profitable, which is why it might make sense to explore properties in your area. However, before you put in any offers, you should book an appointment with a property condition assessment specialist. Here are three reasons why.
1. Understand Challenges
Before you buy a property, it makes sense to learn as much as possible about the condition of the building. From damaged plumbing fixtures to walls that are in desperate need of new paint, it's wise not to let poor housing conditions surprise you.
By getting a condition assessment, you can learn about everything from the plumbing and electrical systems to the structure of the building itself. If there are big problems, you can go into the deal with those costs in mind, which could save a lot of cash later.
2. Negotiate Price
Another powerful perk of condition assessments is the fact that they can help you to negotiate the price of the property. For instance, if you learn that the building needs a new roof, you can account for that cost when you submit an offer. With the condition assessment report in hand, you can use that information to justify your offer, which could help you to get a better deal in the long run.
3. Create Accurate Timelines
How much time do you have to get the property fixed up and people moved in? The sooner you start renting properties, the sooner you can pay down the mortgage. Property assessments make it quick and easy to determine how long it might take to turn your venture into a profitable business, which can really make things easier.
After you have your assessment, it's important to get bids and scheduling information from contractors you might hire to work on the space. By having as much info as possible, you can determine when you could likely move renters into the space, so you can find out when the project would be profitable.
By doing what you can to truly understand the condition of a property, you can anticipate expenses and plan accordingly. Property assessments also give you more time to think about the project, since they may make the entire deal contingent upon your approval of the inspection. Talk with a property condition assessment consultant in your area if you are serious about moving forward with an investment.