The exit plan

With rising foreclosures in the American neighborhood, you must have surely heard of real estate investors making attractive profits in foreclosure investing. While some purchase the properties at great bargains, refurbish it, then flip the property, others hold the property after restoring it  and wait for the prices to appreciate before making the sale. In the meantime, they lease  the property and earn a fixed monthly income.

Investors choose different exit strategies based on their investment goals and expectations. If you too intend to invest in Atlanta investment real estate, just remember to plan out an exit strategy before purchasing the property.

Whether you intend to sell or rent out the property, conducting a thorough research of the neighborhood and understanding buyer’s needs is essential before purchasing the property. Whatever the goal, it is advisable to do an accurate assessment of the neighborhood to determine the demand for sale or rental properties. For instance, if you are looking at renting out the property and the market there does not have a demand for rental properties, you might eventually end up with a vacant property. Similarly, when you are renting out the property, assess what tenants are looking for in the house. Determine what the other houses in the neighborhood are like. If the neighboring homes have garnet counter tops, hardwood floors, tiled showers,  then it is advisable make those same upgrades to  the property.

It is important to do the math and make clear estimates of all repairs, labor, marketing as well as  including utilities and monthly payment costs on the loan until the property is sold or rented . Your investment value is equivalent to the purchase price plus the repairs and rehab costs. Estimate the repairs cost and sale price to understand if the investment is profitable or not. Through estimates, you will also understand if flipping is preferable to rental or vice versa.

Ultimately, patience and research is the key to successful real estate investment. Thus, whatever the exit strategy may be, do your research before proceeding  ahead to avoid being left with a vacant property.