Fairfax County VA Home Search Website Blog

With the prices of property so low, you may be thinking of buying one of the Fairfax County VA homes for sale for investment purposes.  These three tips can help cut down on possible mistakes:

Tip #1 – Decide how long you want to own a property before you buy it.
The longer you plan to own a property, the more you’ll want to spend to fix it up.  For instance, if you’re keeping the property for 20 years, you’ll probably be doing some major repairs: new appliances, a new roof, etc.  However, if you’re only planning on keeping the property for a few years, you probably don’t want to make major improvements unless you’re sure you can make back the cost.

A shorter time also means more investment risk.  In 20 years, your Fairfax County real estate will be more likely to appreciate, while it might lose value in the next two years. 

Long-term ownership makes the most sense for many investors.  You have time to deal with any shifts in the market and rental income can make a nice supplemental income.

Tip #2 – Get your credit in shape.
In general, lenders require bigger down payments, higher interest rates and stronger finances for buying rental property than they do for primary residences.  This is because people are less likely to default on their homes than they are on investment property.  The less consumer debt you have, the better your credit score; the better your credit, the better chance you have to get a decent loan.

Tip #3 – Build a cash reserve.
It pays to have a substantial cash reserve after buying real estate for the purposes of investment.  This reserve can help pay for unexpected repairs, remodeling to raise the value of the property and rental vacancies.  A good start is to set aside at least a month’s rent per unit, then build from there until you have 6 months worth.

Along with basic common sense, following these three tips can help you along the path to investing in one of the Fairfax County VA homes for sale with the maximum return on your investment.

Are you thinking of buying one of the Fairfax County VA homes for sale as an investment property?  Give me a call today at 703-909-3939 or email me at Steve@HomeSearchWebsite.com. I’m an expert at negotiating the best price and terms for your real estate investments.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com