So, why is this important if you are buying the home to live in? Because life throws a curve ball and if you have to relocate out of state, buy a new home so your mother-in-law can move in, or your income changes significantly, it’s good to have a backup plan.

Before you buy the “perfect” home, weigh pros and cons from the renter’s perspective. Are there modern conveniences? Garage and/or storage? How close is it to quality schools, public transportation, successful corporate jobs and commute routes?

As you update and make changes that suit your needs, keep in mind the resale or rental factor. You may love the cast-iron cookstove in the bathroom, but it probably won’t be a selling feature to most buyers or renters. High-maintenance flower gardens and landscaping is another con if you think your home may likely be a rental property after you build equity. In 30 years of property management I recall maybe one or two renters who willingly hand watered, pulled weeds, and trimmed gardens.

To continue on the idea of investing in a home, whether it's a rental, first or second home, here are a few things to keep in mind:

Location

You’ve heard it before, “Location, location, location!” No matter how upgraded the property may be or how elaborate the Italian tile, if the home backs up to a busy interstate or apartment complex, or is the only upgraded home on the block, you may have a difficult time renting or selling the home.

Finding a fixer or livable home that just needs some TLC is one thing, but it can be a diamond in the rough if it's the roughest-looking home on the block. If you are good at decorating and deferred maintenance, a home to live in and update over a 3 to 7 year period–that is in a desirable neighborhood–is a good opportunity at the right price.

Always weigh the pros and cons. Home buying can be very emotional, especially if it's your first purchase, and anxious buyers can overlook important details.

We plan to purchase a second home we may retire to in 10 to 15 years. What advice do you offer in selecting a good investment in today’s market?

There are good opportunities to be found in today’s market. However, be cautious in what you deem a bargain. Homes that are in foreclosure, short sales, or on the market by an over-extended seller aren’t always a deal. Some of those homes may be overpriced due to the debt against them. And, often as not, they are sold as-is under stringent loan terms you can’t negotiate.

If you are a knowledgeable, experienced investor and understand the foreclosure/short sale process and can evaulate the integrity of a home before making an offer, a distress sale may be a great opportunity. I recommend you research comps or have an experienced buyer's agent assist you through the process. Interest rates are low and you can, with some cash down, make a good investment purchase that will pay off in the long term. House flipping is risky, so your plan to keep it 10-15 years is a wise strategy.

Remember that if you offer on a short sale or bank-owned property, it usually will take longer to get acceptance than if you were buying directly from an owner. The bank must approve price and terms.

A short sale occurs when a home is sold for less than the loan held on it. For instance, a home sold in 2006 was purchased for $475K with 5% down. The market drops, the value is less, and the owner has financial difficulties or is in an adjustable mortgage and can't make the payments. If the loan is $450K and the current market value is only $350K, the home can't be sold unless the lender agrees to take a settlement of less than the amount borrowed.

The last our economical seller tips series:

Curb appeal

Curb appeal is a buyer's first impression. Especially this time of year, this is an achievable task with use of colorful annuals and shrubbery. Florals along walkways, container gardens at the entry way, neatly trimmed hedges and lawns all add to the home’s exterior. Shredded bark added to the bare spots or flower bed walkways will tidy up and cover potential mud or dirt areas. Fertilize your lawn a few weeks before listing your home. Remember to keep your lawn neatly clipped and green, pathways swept, and weeds out of flower beds. Use weed killer to eliminate sprouts in driveway and walkway cracks and crevices.

Aside from landscaping, other factors that improve your curb appeal include:

· Pressure washing the driveway to remove dirt and stains
· Refinishing wood porches and decks
· Clean, straight gutters and downspouts
· Storing yard tools and garbage receptacles behind the fence
· Installing hose reels or storage boxes where you have hoses