With TV shows such as Flip or Flop, Love it or List it and many more, real estate shows have grown in popularity and so has real estate investing. Whether they are looking into buying a rental property or wanting to flip the home, there are several things investors look for before they take the plunge.
Location, Location, Location!
Real estate investors live by the rule: It’s all about location. They look for properties near good schools, in a stable job market area, and near public transit. These factors make properties more valuable and also more desirable. For example, if you are buying a property near a public university, you are more likely to more students wanting to rent from you.
Condition
Some homes need only cosmetic repairs while others need an extreme home makeover. According to a survey by Remodeling magazine, some of the most cost-effective enhancements can also be the least expensive to do. For example, changing a front door can bring in 30% more profit! Simple things such as paint and landscaping can truly transform a home; however, replacing a roof, plumbing, and heating systems are things that will not return your money back in the end. Real estate investors try to stay away from the “fixer-uppers” and go for the homes that only need cosmetic repairs.
Timing
Just like any other investors, they must take into consideration the housing market. If the area is starting to grow again, that is the perfect time for investors to jump in. But if the prices are skyrocketing, then they need to sit back and wait until a more stable time. Real estate investing is all about making smart moves and knowing what is best for you.
Features
What’s a home without great features? Real estate investors love to look for what the home has to offer. Does the property come with many acres of land? How many bedrooms and bathrooms does it have? These are things that will stand out to potential buyers and make their property stand out. But they have to make sure that the features match the price and will provide a positive cash flow in the end.
Are there any other factors you look for when investing in a property? Let us know in the comments below!
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