What to Look for in an Investment Property for Sale
Are you looking for investment property for sale, but don’t know where to start?
Finding an investment property is one challenge. Knowing what to look for to ensure the best possible returns is another.
At LAS Companies, it’s our goal to make sure real estate investors know what that they’re getting into ahead of time. Any real estate transaction involves a significant amount of time and money so it’s important to take the necessary steps to avoid mistakes.
Here’s what we recommend looking for in an investment property for sale:
Neighborhood & Surrounding Community
Just like you would for a house you planned on living in, you want to have a good idea of the neighborhood. Except this time, you will need to look at it from the mind of a prospective tenant.
Some of the questions you need to ask are:
- Is it safe for kids to play outside?
- Are their schools nearby?
- Do the neighbors take care of their homes or do they look rundown?
You also want to consider the surrounding community. It’s important to know crime rates and how that could impact your ability to attract tenants.
Here you need to know:
- Are there a lot of amenities close by?
- Does the community have a grocery store located within a few miles?
- Are there activities nearby for people to participate in on days off and weekends?
- Are there adequate stores for obtaining household goods or would tenants have to travel a considerable distance to shop?
Again, you will need to think like a tenant and what will help to attract them to that location. Some of these items may or may not be a factor. However, the more amenities and positive traits that come with the area, the more likely you will have stable tenants and a good return on your investment.
With some communities still recovering from the economic recession, it’s crucial that you know about any economic factors that could impact your investment.
A few questions you will need to ask here include:
- How is the job market in the area?
- What is the unemployment rate for the city and region where the property is located?
- Does the area have a strong business sector?
- Does the area supply jobs in multiple industries or only a select few?
Answering these questions, will help you to determine whether the area’s economy is strong. It will also help you to decide if another recession could impact your investment.
If the area is struggling with unemployment or jobs only exist in one or two types of industries, that could impact your tenant’s ability to pay rent now or in the future.
Stick to areas that have a strong economy and employ people in a variety of industries to help protect your investment.
Condition of the Property
Probably the biggest factor you need to look for with an investment property is the condition of the property.
While some real estate investors are okay with buying a home that needs repairs, you need to consider what you’re getting yourself into. One important factor here is that the more extensive work required on the home, the longer it will take you to start earning an income.
You will also need to decide if you will make the repairs yourself or hire a team to do it for you. And depending on your investment goals, you will need to look at the amount of money you will need to spend in comparison to how soon you can make a profit.
If you’re concerned about how soon you can start seeing a return on your investment, your best bet is to go with an investment property for sale that only requires minimal repairs or upkeep.
How We Can Help You Find an Investment Property for Sale
If you’re looking for an investment property for sale, it can be a daunting task.
That’s where LAS companies can help you in a variety of ways. Not only do we have an inventory of vetted properties for you to choose from, but we also can help you prepare a plan to help you reach your investment goals.
Interested in learning how we can help you with your real estate investing goals? Fill out the form to connect with one of our team members for a free, no obligation consultation.