Everything always comes down to money how much is it going to cost me. Granted houses are not our greatest assets actually it leans more into the liability side of the spreadsheet. With this in mind how can we convert a liability into an asset or at lest break out even.
1. Location is the first biggest hurdle to overcome. Were to build or buy a house (neighbor hood) these three locations are about 4 miles apart
a. Poor location -a house located in St. Paul Park next to the oil
refinery has a lower value therefore a lower return on your investment
b. Average location- a house in South St. Paul most of the homes are small square footage.
c. Good location- South Maplewood next to the St Paul sky jump In this location the lot values are higher so is the return on your investment.
2. What Type of house is the best type of investment to buy either 1story or 2 story with a full basement at least an 8” high basement ceiling. Don’t buy a split level their hard to dress up, or add on to the structure. It is nice to have a walk out basement but not necessary.
3. These are some of the things we should look for in a house.
Drain tile under the floor of the basement and out side the foundation
A flooring system to carry an adequate working load of your living style
Is it good to know what type insulation? fiberglass, foam if its cellulose it’s not that good.
Exterior weather protection – what type- wall? Brick, Wood, Steel, Aluminum, Vinyl
– Roofing? Shakes, Shingles, Steel, Hot tar roofing, rubber
Floor coverings? Stone, tile, wood, vinyl or carpet.
Appliances (furnace, water heater, water softener, humidifier)
Don’t look at the poor paint job, out dated appliances, or the bad carpet these things can be replaced.
4. What is the life cycle of the Roofing, siding, windows, and driveway
5. Do you own these items or are they going to own you (Time and Money)
6. The main thing you look at is floor pattern can you live with the layout of the house.
When these questions are answered with no emotions than you have the right to look a little deeper into the property. Call the city and/or county and ask for info about the property. Never address the property as your house or the house until you actually own the place. This way you will keep an open mind if a problem crops up. You leave the property with no regrets or hurt feelings.