How do we know when a property is a good investment deal? There are four major things we need to look at to before we decide to buy:
1. Pricing. Is the property price in line with the market, as well as features of the home? We need to pull values and look at criteria, such as curb appeal, bathrooms, and amenities. We want the price to make sense with what we’re getting.
2. Features and benefits. You need to decide if it’s worth paying potentially tens of thousands more for a good view or a pool. Is there an exit strategy for us if we need out? These are things to keep in mind.
3. Location. Sometimes the best deals aren’t actually places we ourselves would want to live. We have to think of it from the perspective of, “Could I see myself living here? Would I want to stay here for years? Would I be happy here long term?”
4. Condition. You may love a property, but it could become a money pit if it’s in bad condition. We purchased an investment property and had to renovate it for $250,000. With properties such as this, it doesn’t matter what the details, location, and benefits are—a place in bad condition needs a long, hard look.
If you have any questions, need information, or have video topics you’d like covered in the future, we’d love to help you out. Please call, email, or message us; we look forward to hearing from you.