Thinking about buying an investment property in the Omaha area? It’s a great way generate wealth for your family. Review these 6 tips about buying a property before investing in Omaha!
Before buying an investment property in Omaha real estate, you should be well informed. Fortunately, much of the information you need is readily available. Take time to collect the information and understand if its a solid investment. Investing in real estate investment is an important decision and shouldn’t be taken lightly. Here are 6 tips to review before investing in Omaha real estate.
Tip #1 Research Title History
You can start with the county assessor’s office to understand the history of prior owners and what they paid for the property in past transactions. This history will give you better info for negotiations. But, don’t rely on the assessor for accurate title information. Their job in collecting taxes, not ensure the title is legally and properly recorded.
Before proceeding with a purchase, you need to ensure the property has a clean title. If there is anyone else who can make a claim, historically or through more recent leins, that can make your purchase invalid. You should always use a title company to reaseach the title history and provide insurance in the event of a claim.
Tip #2 Investigate Repairs and Renovations
As you review an investment property in Omaha, learn as much as possible about the property’s history. Look for additions and structural changes. Were permits requested and was the work done to code? Can you identify the contractor or homeowner that did the work? This research will help you avoid future problems from substandard work. If you aren’t a contractor yourself, bring in someone you trust to review the work and make sure it is trustworthy or to give you an estimate of the cost to repair it. If a lot of work is required, you’ll want to have accurate estimates to support your offer.
Tip #3 Where is Future Development Planned
You can’t predict the future, but it’s pretty easy to tell where major developments are likely to happen. Monitor the news and city council/planning board minutes to see where others Omaha investors are putting their money. New construction can impact on the value of the property and the amount you are able to charge for rent or resale value of the property. New schools, stores, or roads being can almost always predict future growth, adding value to your property. If you don’t find indications of new development, you might expect prices to remain level or possibly drop if the area isn’t well maintained.
Tip #4 Know the Local Zoning Regulations
City or county regulations can impact your plans for the property. You may not be able to change the facade or add a carport if the rules are restrictive. Some have historic protections and others may limit multi-unit developments. It can also be a positive change. Perhaps the property is in a high-density zone that allows you to convert it into a 4-plex and office building. You might also be surprised that endangered or protected animals may limit your building plans. You’ll want to check on the zoning of the property in question as well as what is nearby, before making an offer on a property.
Tip #5 Ask for Owners Financial Records
Always ask for the property’s financial records so you can estimate your potential income before buying. This should include rent rolls (monthly income, length of tenancy, and lease terms), and expenses (utilities and repairs). Also looking into how other properties are performing in the area. Many property owners will offer lots of information, but you should require documentation to back up their claims. You don’t want to find yourself stuck with an unrentable property in Omaha.
Tip #6 Neighborhood
Do you know the first three rules of real estate? Location, location, and location. A great location is one of the most important things when it comes to buying an investment property. Is it popular and growing? Convenient to work or transportation? Is it a place people want to live? These factors will impact your rent and how your tenants care for the property. Develop some expertise on the local neighborhood before buying an investment property in Omaha. Become familiar with the local businesses and attractions in the area. If so, it can be the perfect place to buy your Omaha investment property.
Buying real estate in the Omaha area can be a very smart move financially. However, not all properties are the same. It’s important to look at the physical history of the property as well as the financial. The ownership history and knowledge of the neighborhood are critical as well. Learning as much as you can about a property before making an offer will give you the upper hand in the long run.