Ireally enjoy buying properties during the holidays because many other investors are on vacation. With that being said, here’s part 2 of what to look for when buying an investment property.
First, the location is very important. You want to check out the surrounding area and ensure that you will have interested buyers for this location. People like to look at crime rates, school districts, local amenities, and more.
Second, you need to look at comps - or the comparable homes in the area that have recently sold. Do this to get a ballpark number of what the value of the home will be once you have flipped the home.
Third, evaluate the key ticket or expensive items so that there aren’t any unforeseen repair costs. This includes looking at things like:
- The foundation
- The roof
- All systems: electrical, water meter, gas, etc.
- The windows
- Interior features (are they outdated?) - flooring, fixtures, kitchen, etc.
It’s important to make sure that you have all working meters otherwise it can mean that the city is involved and that there will be a lot of red tape. You can have a difficult time if this is the case and it can cost you more money. But, if the home is still worth the investment and upgrades, I would still do it.
Note that you will typically render the highest returns on the kitchen and bathroom upgrades.
Also, if the windows are boarded up, there could be liens on the property and this can make it harder to sell the home and close escrow. You’ll have to be proactive and go to the city to see what the situation is.
I hope that you found this video and blog to be helpful in guiding you with real estate investment. Thanks for stopping by and we’ll see you next time on The Badiola Breakdown.