Buying investment properties can be challenging and sometimes scary if you do not know what your doing.
I had purchased a home in Mesa for a client. The home was a 3 bed, 2 bath home with a pool. We brought our contractor in and started working on remodeling.
During this time we brought in our pool guy to get a quote on the pool. The quote came in at about 3 times the cost of a normal pool resurfacing.
We got a second quote and again the quote was 3 times the cost of our usual quote. With further investigation we discovered the problem was pine trees roots. The roots were literally lifting the pool up out of the ground.
Pools usually bring about $8k in value for appraisals in Arizona. The cost of this pool was $11,500, which was more than it was worth. So we decided to bury the pool for $2500.
After trimming some other costs, this investor still cleared about $8,000 on the property.
The moral to this story is, make sure to allow enough financial wiggle room to cove the unknowns that come-up from time to time. That will ensure you make money on every deal.
Brett Young - Valley Realty http://www.rooftopprofitmax.com/
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