1. Has Curb Appeal
First and foremost is curb appeal. It may or may not look like much now, but if you need to present this property to future tenants, does it scream, “rent me”? If needed, can you make the necessary changes without impacting your financial situation? Knowing that a tenant is most likely going to rely heavily on appearances, you want to make sure that your home can put its best foot forward.
2. Can be Renovated Without Breaking the Budget
So many of us can look at the worst house on the market and still somehow, in our heads, work out a way in which we can strip this, or replace that, and turn this seemingly worthless home in to tenant grabbing machine. And don’t get me wrong, there is nothing wrong with master this ability to see the end result while looking at the present picture. However, you want to make sure that your venture makes sense. Does the cost make sense? Will it offset your ability to make money? Keep these things in mind when looking over potential new investments.
3. Good School District
You don’t exactly have to be standing in the property to learn more about this subject. Use the internet and find out what all the other sites are saying about the nearby schools. Don’t limit your research to just high school or college. Look for all school and see how they are rated, how are they viewed in the community? This will also impact the mindset of potential tenants, so do your homework.
4. Nice Neighborhood
Now, normally this goes without saying, you want to make sure your rental property sits inside a nice neighborhood. As far as crime, and everything related, yes that is absolutely correct. But there is another version of a “nice” neighborhood that can also tell a story about your potential investment property. Is the community thriving? Are the houses kept up with or are they looking a bit stale? You can tell a lot by paying attention to how the neighborhood is keeping up with the times. If the houses look like they are continually being updated and treated with some TLC, this may be a good neighborhood for an investment.
5. Job Growth
One thing that we often don’t think about when choosing an investment property is the job growth in that particular area. If an area is booming with available jobs then of course it is a great place for tenants to live. Even if the terms aren’t long, you can be assured there will at least be a decent amount of people utilizing, or wanting to utilize the area around availability. Research the community surrounding your potential investment. Steady job growth means a good sign for the property.
Over and over again we state that real estate investing is a perfected form of art, no one starts out a master of the trade. So take some time and learn as much as you can about investing. We are always here to help! Contact Buckeye Northwest Realty today to learn how we can help you plan your new future in real estate investing.