4 Things to Look for in an Investment Property
Are you thinking about purchasing an investment property this year? Whether you are thinking of buying a fixer-upper to flip, or are looking for a property to use as a rental property, there are some important things that you’ll need to look for in a potential investment property.
- How much work does it really need? Before you put an offer in, you need to have a very clear picture of all of the work (and money!) this property requires. If this is your first time rehabbing a house, bring a contractor with you to give you their honest opinion of all of the projects that need to be done. A property may appear to only need cosmetic changes, but there could be larger foundation issues (for example) that aren’t obvious right away.
- Location. You might find the perfect investment property, but is it in an attractive location where other people would like to live? What is the neighborhood like? Are there other rental properties in the area? An experienced realtor will have the insight to help you find the perfect spot for a successful investment property.
- Potential. A smart rental investment property is one that appreciates in value. If you are planning on owning this property for a long time, you want the property to increase in value so that when you are ready to sell, you’ll make a profit. Do some research on future development plans in that area to help you make your decision. Once again, this is where a great realtor can help! They often have insight about different communities that could be the perfect fit for you.
- Real costs. Making a decision based on emotion (and what you’ve seen on HGTV) is a big mistake that many first time investors make. Beyond the purchase price and renovation costs, you’ll need to consider property taxes, insurance, and operating costs. Be honest and realistic about what your investment will cost now, before it’s too late.
Ready to start looking for an investment property? We’d love to help! Contact us here and let’s start the hunt for the perfect place!