Within the investing world, it is important to stick with a system and maintain discipline. While it is certainly true that a regimented system can help to avoid suspect deals, it also limits the types of deals you can pursue. If you are steadfast in buying single family homes with three or more bedrooms, you may find that the local inventory can’t afford you with as many opportunities as you would like. This doesn’t mean that you have to speculate on every property that comes your way, but you do need to be flexible when it comes to your approach.
No two houses are exactly alike. Even if you look at similar houses on the same street, there will be at least some minor differences in location or layout. It is because of this that you can’t fit every property into one box. A house may not have the exact specifications you are looking for, but it may be in the neighborhood you want. Conversely, a property may have everything you want, but not be in a location you desire. Each property must be judged on its own merit and evaluated as such.
If you dismiss a house simply based on its numbers or location, you may be missing out on some good deals. Instead of having strict investing guidelines, you should have a broad list of items you want in a house and those that are to be avoided at all costs. You can still have structure in what your price range is and your general investing approach.
It can take years before some investors change their plan and consider alternate properties. There are differences with each type of property, but at the end of the day, the same principles apply. If you buy low in an area or property with greater demand, you will be able to sell for a profit. With inventories shrinking in some areas, it is better to get started now than to wait for your market to completely dry up.
One of the things that make real estate investing so great is that there are so many different options to choose from. In addition to the various types of properties, there are a myriad of options in regards to flipping, renting and holding for the long term. You don’t need to be an expert in every area and every type of property, but you should know enough about each that if a deal comes your way you can explore it. What you should never do is dismiss a deal just because it is not the way you do things or not how you have done them in the past. You should keep an open mind while deciding to pursue or pass.
Real estate is no longer one size fits all. In today’s market you need to keep an open mind on every opportunity that comes your way. You never know when you will find a niche that changes your business.