Before purchasing a new property, you should always carefully evaluate the home, so you don’t find yourself with more problems than you bargained for. To ensure you find the perfect investment, here are the 10 things every savvy investor should consider.
#1 The Location
This, of course, should be the first priority. You can paint over a color you don’t like, change fixtures and even add to the home, but the one thing you can never change is the location. When looking at properties, consider the distance from business centers, schools, parks, stores and medical assistance.
#2 The Details
Does the property have a basement or attic? Is there a view? Are there stairs? Do surrounding homes look into the house? What about the property’s exterior? Is there a surrounding yard? Is it a suitable place for kids or pets? Consider what everyday life might look like for prospective tenants, as well as the details of the home to make sure it’s a good fit.
#3 The Neighborhood
The city, the house itself and the neighborhood should all live up to your expectations. Visit the home during the day to see the activity in the immediate area, and return in the evening to see how noisy it is during nighttime hours. Also, take a look at the surrounding homes and see if the yards are neatly kept. The physical appearance of the homes can tell you something about your neighbors, as well as the neighborhood in general. And as a matter of safety, always jump online and look at the frequency of crime in the area.
#4 The Home’s Personality
To add value to the house you buy, give it a little personality. What gives a house character? There are tons of variables. And while many of these characteristics are easily adjustable, others are not. Consider things like building materials, landscaping and certain attributes that modern tenants and buyers can or can’t live with.
#5 The Size and Layout
Size matters. Bigger isn’t necessarily better, but it should be a realistic fit for potential tenants and buyers.
#6 Number of Rooms
Like size, it’s important to think about how many bedrooms and bathrooms you will need. Is there enough room for a growing family? Is there a dedicated guest room, home office or workshop?
#7 Closets and Storage Space
While bedrooms and bathrooms are typically high on the list, storage space is sometimes overlooked. However, it’s definitely something that should be taken into consideration. Don’t just think of closet space for clothes; tenants and buyers will also need room for bulky items, linens, sports equipment and miscellaneous decorations.
#8 The Kitchen
For anyone who plans to do a bit of cooking, the layout and space of the kitchen is essential. Look at cabinet space, counter space and the number of drawers. Take a walk around the kitchen to make sure it’s workable as is, without having to do any major remodeling.
#9 Windows and Lights
Airflow and lighting are also extremely important factors to consider. While the home may look bright when you walk through it during the day, it could look a lot different at night without sufficient lighting. Look for outlets and make sure there’s an adequate amount for daily living.
#10 Finishing Touches
While finishing touches like fireplaces, staircases and a rollup garage door aren’t deal breakers, they may increase the value of your property.
When you’re looking for the perfect investment opportunity, there are many elements to assess. These 10 things can help you determine if a property really is the right investment for you.