|
|
|
4 Simple Tests To Find Good Real Estate Investment Properties
ou're driving along the flip the property for profit.
road when you spot it.
There in the middle of a Test 1: The Neighborhood
shaggy lawn sits a disheveled Test
property. It may need a good coat
of paint, or a shutter Before you invest another hour,
straightened out, but it's easy do yourself a favor and take
to see that with a little work it stock of the surroundings. The
could be a little gem of a old saying in the real estate
property. Best of all, sprouting business that the three factors
in the middle of the unkempt in selling a home are 'location,
grass is a For Sale by Owner location and location'. What is
sign. It looks like the perfect the location like? No matter how
fixer-upper, but how do you know wonderful the property is, you'll
for sure? have a difficult time selling it
for top price in a bad
First, consider your reason for neighborhood. That doesn't mean
buying. If you're looking for a that it's a bad property -
property to 'flip' - to buy low, depending on how low a price you
fix up and sell for a profit - can bargain, you still may be
there are a number of things able to make a decent profit from
you'll want to take into it.
consideration. If your intent is
to buy it as rental property, Another consideration in the
there's a different set of Neighborhood Test is a bit more
consideration, and if you're subjective, and you'll have a
looking for a home of your own, feel for it if you're local and
there's yet a third. Let's keep an ear to the ground. Is the
assume, for the sake of this neighborhood in transition? A
article, that your intent is to neighborhood that is on the cusp
of a renewal effort like residents, and provided
gentrification can be a great additional incentives to home
place to invest, as long as the buyers within several blocks of
upward momentum continues. An their campus. Investors who
area that is on the outskirts of bought just before the
new development will often announcement realized excellent
benefit from that as well. If, on turnaround on their investment.
the other hand, the neighborhood
shows signs of slipping into a Test 2: The Pricing Test
decline, you might want to pass
the property by. If you can see Is the home listed with a
that the neighborhood is Realtor, or is it a FSBO? How
slipping, so will prospective realistic is the asking price? Is
buyers. it in your price range? Can you
work out a low or no-money-down
Are there 'amenities' nearby? financing option? How open to
Depending on the neighborhood and negotiation is the seller? Will
your prospective market, those you be able to realize a profit
amenities might include a after making needed repairs?
neighborhood school with a good
reputation, a corner store within Test 3: The Condition Test
walking distance, or a park right
down the street. In one
Massachusetts city, for example, This is one of the most important
the value of properties in a tests. The property you want to
formerly depressed neighborhood buy doesn't require any
skyrocketed when a local extensive, expensive repairs. It
university announced a commitment should be structurally sound,
to provide full tuition to the without any major plumbing or
children of neighborhood electrical problems. If you're
just starting out, you'll want a
property with repairs you can * Lift tiles in suspended
manage yourself - repainting, ceilings to examine the ceilings
refinishing floors, a little above for loose plaster, moisture
landscaping. If the property stains and other indications of
requires more extensive repairs, problems
it will cut into your profit, or
eliminate it altogether. Test 4: The Title Test
When you view the property, The final test is the title test.
really kick the tires. Look for Be certain that the title to the
indicators of hidden problems. property is clear, with no liens
Here are a few things to look or attachments that could sour
for: the sale. If there are, and you
still want the property, work out
* Moisture stains on walls and a conditional sale, where your
ceilings could indicate plumbing purchase is contingent upon the
problems liens being satisfied.
* Little piles of sawdust near If the property passes all of the
corners or woodwork could mean above tests with flying colors,
termites. congratulate yourself. You've got
yourself an investment property
* Separations between floor and that could turn a pretty profit
wall, especially outer walls for you.
which could indicate structural
problems.
About the Author:
Andrew is the web owner of "Home Buying and Home Selling Tips: How to buy and sell house fast", a website that provides informational guide on home buying, selling house, home mortgage loan and more. You can visit his website at: http://www.buy-and-sell-house-fast.com/. This article may be freely distributed if this resource box stays attached.
Source: www.isnare.com
|
|
