You’ve saved money for a down payment, and now you’re ready to start investing in real estate. It’s a great way to see a good return on your investment and prepare for retirement, so long as you make the right choices. Here are some questions to ask before investing in a property.
What Are Similar Homes Selling For?
Look for comparable homes in the area and see what their going rate is. According to Stefan Soloviev, the only way to determine if a property you’re considering has a good flip value is by seeing if nearby homes of similar build and square footage are selling at a profit.
How Long Has the Property Been for Sale?
A property that’s been on the market for a long time could be a red flag for potential problems. The seller might be difficult to work with, or there could be hidden problems with the foundation. Be diligent about researching the facts before you make a commitment.
What’s the Neighborhood Like?
Do neighboring homes look clean, and are the yards well-tended? You not only want the property you’re considering to have curb appeal, but you also want it to be located in a good neighborhood. Check with online sources to determine whether the neighborhood is a safe area your tenants want to live in.
Is the Area Growing?
Buy a home in an area with a declining population and you may be stuck with a property you can’t sell or rent, so make sure the property is located in an area that is growing in size before making a commitment to buy. You don’t want to have trouble selling the house when it’s time to flip it, and if the property is located in a booming area, you could see a strong return on your investment.
What Does the Property Offer?
Don’t just think of the property’s potential, but consider what it currently offers. The more assets a property has, the easier it will be to sell once you’ve finished renovating it.
Is the School District Good?
Most families renting a home have school-age children and will want to move to an area where there are good-quality schools available. Make sure to check the local school district and find out about its graduation rate before you invest in a property in that area.
By doing your homework before you invest, you’ll rest in the security that you’re making a wise investment that will reap a healthy return on your investment.
