4. Is In Good Condition
When looking for an investment property it’s important to evaluate the current condition. As a potential real estate investor, you should always ensure the property is in good shape so that you have the best chance at making a solid profit from it.
Look for homes that are newer and look like they’ve been well-maintained over the years. Not only does this save you maintenance and repair costs down the road, but it’s a lot more enticing to potential renters or other buyers who you might sell to in the future. Renters or potential buyers aren’t going to want a run-down house that could eventually become a money pit due to wear-and-tear and poor upkeep. It’s much smarter to find an investment property in good condition that will actually be worth it in the long run.
However, the decision to purchase an old house versus a new onsure!e depends on what you plan to do with the property. If you’re looking to purchase an investment property to flip, you might actually be looking for one that isn’t in the best condition. In that case, it’s even more important to assess how much work you’ll have to do in order to restore the house to a livable condition. The same goes for fixer-upper properties as well.
5. Has Low Property Taxes
Another feature to look for when you’re checking out investment properties is to make sure the house has low property taxes. These taxes are set by local governments and are calculated by finding the assessed value of the home, deducting any exemptions you’d qualify for and then applying the municipality’s millage rate.
Since you’re using this property as an investment, you definitely don’t want to be paying a large amount of money in taxes on top of the additional costs that come with owning real estate.
Keep in mind, you can check out the property taxes by state to get a better idea of the best places to live that tend to have lower property taxes.
6. Is Easy To Maintain Over Time
If there’s one thing that will make owning an investment property simpler, it’s finding a home that’s easy to maintain. As you’re looking at property, take the time to assess what you would need to do on a regular basis to keep up with the maintenance of the home – especially if this is going to eventually become your primary residence. This includes everything from gardening to lawn care to other upkeep tasks depending on the age and condition of the home.
If you’re looking for a more low-maintenance type of investment property, a townhouse is a great option in order to avoid having a lot of outdoor upkeep tasks that can take up your time. Since the home shares two walls with other townhomes, there is significantly less for the owner to do outside on a regular basis. Other homes, like apartments or condos, will also have a lot less maintenance for owners to do on the exterior since property management companies will take care of that work.
