Making money with rental and real estate property

• Home should be located in a safe neighborhood or area.
• Easy access to stores, transportation or highways, schools, etc.
• Stable home values of nearby properties
• Low property value in relation to other homes in the area
• Only "simple" repairs and renovations needed. Such as new flooring, paint, appliances, fixtures, yard work.
  If a new shingle roof is needed, check to see how many layers of shingles already exist on the roof and what the requirements are for that area.
• No structural defects
  Check foundation, look for major cracks that are not the result of normal settling.
• Electrical is up to code
  Electrical upgrades are generally too expensive and not worth the investment. If purchasing a home that needs electrical improvements, be sure to get an estimate and deduct that into the price of the home.
• Do repairs and renovations yourself
• Do not pay more for "high quality"
  Reasonably-price appliances, carpet, etc. are a better investment when updating rental property or when flipping real estate.
• Choose durable and low cost items (such as installing ceramic tile) when updating areas of the home.
• Do not put a lot of money into landscaping -- keep it simple and maintenance free.
• Do not tear out a wall such that you lose a bedroom, unless there are already 3 or more bedrooms.
  Home value is based on number of bedrooms (up to 3) and number of half or full baths.
• Shop at yard sales, estate sales, and online sites(such as craigslist) for appliances, carpet, and furniture, if needed.
• Concentrate on curb appeal, front entry, kitchen, and baths.
• Keep paint colors neutral and use satin finish on most walls.
  Satin finish has a very slight sheen and wipes up easily.
• The main living area of the home should feel open, light, and airy.