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If last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect tenants' security deposits at closing.
6. Assess The Tax Situation
Taxes are an integral part of successful real estate investing, and they often make difference between a positive cash flow and a negative one. Know tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor. 7. Investigate Insurance Coverage
If seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.
8. Confirm Utility Costs
Ask local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent.
9. Consult Your Accountant
Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with constantly evolving tax code.
Make sure that you always perform a thorough inspection of property before buying it. Never, ever buy any property without at least examining site. In some cases, hiring professional inspectors to examine structural mechanical system may be a sound investment.
(c) Copyright 2005 Madan Ahluwalia. All rights reserved.
Madan “Raja” Ahluwalia is an Attorney at Law & Realtor. Raja offers his clients a counseling-based approach to home buying, where the client’s long-term goals are the most important consideration. He possesses a thorough understanding of the market and trends, based on years of involvement in real estate. He provides expert insights and helps clients understand timing, pricing and financing issues. Contact Raja at firstname.lastname@example.org or 650.430.4023.