You’ve finally found the perfect investment property —a fixer upper with tons of potential and plenty of charm. But does it check all the boxes for a good long-term investment?
While it may look like a good investment, that means nothing if it’s in an area no one wants to live in. It’s time to look past the number of bedrooms and the square footage and consider other items that make it a viable option for investment.
Here are five considerations to take into account before placing a bid on a property:
1.How much work will it need?
There’s nothing wrong with investing in a fixer upper. In fact, these properties represent a great opportunity for investment due to their lower price. That said, it’s important you understand what’s required to make a fixer upper into a profitable rental property before purchasing.
This way, you don’t end up spending more than what you intended. For a better idea of the areas of a home that need close attention, take a look at the checklist below:
• Roofing
• Doors (garage doors as well)
• Plumbing
• Various cracks found throughout the property
• Electrical
• Foundation
• Windows
• Condition of carpet or hardwood flooring
• Condition of countertop
For a good reference point, research the rental properties found in the area you’ll be purchasing in and ensure your own property is consistent with those standards.
2. Community Amenities
An investment property extends well beyond the plot of land your property sits on. Choosing a property also means investing in a neighborhood and community, so you should thoroughly understand what qualities in a neighborhood make for a good long-term investment.
Everyone’s always looking for a place to settle down sooner or later, which is why you should consider investing in properties in safe, low-traffic areas or even gated communities.
You should also keep your eye out for properties in communities that offer amenities like tennis courts, pools, community centers and other benefits that can make the listing more attractive to buyers or renters.
3. Stores & Shops Nearby
Beyond a property’s immediate surroundings, what other amenities are within walking distance (or even a five-minute drive)?
Make a list of some popular businesses nearby such as a daycare facility, grocery store, movie theater, dog park, restaurants, and other businesses that can strengthen your marketing efforts.
After noting them, do some research to see how desirable these amenities are and how they affect real estate prices. If you invest in an area where people pay top-dollar to live within walking distance to numerous restaurants and bars, you know you’ve got a winner.
4. School System Ratings
Being in a quality school district will do wonders for the long-term health of your investment because it’s a major criteria many buyers and renters check before moving into an area. On Hubzu.com, you can check school ratings on most properties simply by visiting the property’s detail page.
If the schools rate well, be sure to include this information within your property’s description when it comes time to put the listing up for rent or sale.
5. Ease of Travel & Proximity to Public Transportation
Is public transportation within walking distance? Is the property right next to an exit so the highway can be easily accessed?
Americans already spend way too much time in traffic, so any property able to substantially cut down on that time may garner a healthy number of interested buyers and renters. When researching properties, pay close attention to the area’s accessibility to public transportation as well as access to major highways. Having a property with close proximity to subway stations is a great idea in a country where public transportation ridership has grown by 21% since 1997.
Now that you know what to look for, it’s time to search for that perfect investment property. Visit Hubzu.com now to start viewing listings!
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