Now you have probably noticed I told you to bring your contractor with you. The biggest mistake people make is wanting to do their own work. The problem with this is doing it yourself, on your spare time, is time consuming. You have to file your own construction permits and then there is the buying of what you need and the installing. Contractors do this much quicker and the money you save will be worth it. Once you purchase the home you ideally want it back on the market in two to three weeks.
Another mistake these investors make is out building the neighborhood. I have seen these investors take homes in a neighborhood that has a top end of $150,000 and then put top of the line marble counter tops, Stainless Steel appliances, hardwood floors. You need to remember just because you put the money into it does not mean you will get it out of it. You are operating at a loss if you turn that home that is topped out at $150,000 in that neighborhood a $250,000 home. Remember who you are selling to. Does not mean you can’t make it a nice home but don’t overdo it. That said do not forget the landscaping as many investors do. Curb appeal has a lot to do with how fast a home sells.
The last way to invest into real estate is with rental property. Not the commercial type but single family homes. Personally I try to stay away from condo’s and townhomes mainly because of the association dues. However these homes will sometimes work but these association fees can increase over time.