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Common Signs a Real Estate Investment Might Be a Money Pit

What to look out for when scoping out your next investment.  

Investing in a property is no easy task. While some investments may prove to be better than others, others can turn into a money pit. Unfortunately, these properties are not always so easy to spot. You have to have a keen eye and know what to look for in order to avoid some disastrous properties. Take a look at these dangers to avoid in a real estate investment:

  • Signs of an unstable foundation. These can be incredibly expensive and time-consuming to repair. Thoroughly inspect the foundation before purchasing.
  • The appearance of cracks and leaks. Cracks are never a good sign of anything, especially when it comes to a potential investment. Leaks can indicate that there are bigger issues hiding.
  • Signs of water damage, rot, and mold in the walls. Even if these issues have been resolved, stains from damage can indicate that there is weakened structural integrity.
  • Bad electrical or repair work. A poorly wired or maintained electrical system is a huge red flag due to the amount of problems it can cause.
  • Sloping floors or drywall. Finding warped wood or drywall can a be potentially expensive consideration, especially if you find a warped hardwood finish in the basement.

When you are looking to purchase a home, make sure you enlist the help of Andraya Coulter to find the best home loan to fit your needs and your budget. I assist California and Texas with all their home loan needs.  Contact me to get started today!

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