Whether you’re looking to buy the home of your dreams or begin the real estate investment game, real estate is an exciting venture to be a part of. Becoming a real estate investor is easy when you know what you’re doing.
When you know what to look for, how to find a good deal, and you have the money to pick up houses and flip them before the market changes, you have every opportunity to see success in the game. Of course, everyone has to start somewhere, and that means learning as you go. If you’re not sure what makes a great investment property, check for these five aspects.
1) The Price is Right
Nothing screams “buy this house” like a price that’s right. What makes the price right? That’s not an easy question to answer. Obviously, it depends on where the house is located, the size of the house, the work needed to make the house livable, and the market. For example, a foreclosure on sale for half the price of other houses in its size range and neighborhood is a good investment. A house that’s more than other houses in the neighborhood is not. Looking into training from a program like Success Path Education can help you learn more in this regard.
2) The Location Is Perfect
Location is everything. If you find a great deal on a beautiful home with every upgrade imaginable that’s in need of very little work, you have to ask yourself why this house is a great deal. A perfect house is not usually affordable. Chances are good the location is not ideal. Is it too far away from anything to want to live there?
Is it a beautiful home in a bad neighborhood? Are the rest of the homes on the block old and unkempt? No one wants to drive up to their dream home and find the neighbors have trash in their yards, use their pool as a trash can and have cars up on blocks. Location matters. When a house is priced right in the right neighborhood, it’s a keeper.
3) The Repairs Increase the Value
Sometimes a house in a beautiful neighborhood priced well under the value is not a good deal. Why? The repairs it needs to make it livable aren’t cost-effective. The house might cost $50,000 less than other houses in the area the same size with the same features, but it might need a brand new roof, all new flooring, a new kitchen, new bathrooms, and it might need all new landscaping. These things add up. A better deal is a house priced well below others that needs more cosmetic work, such as new countertops and paint as well as other affordable upgrades rather than everything.
4) The House Has Something to Offer
What does this house have to offer that other houses in the neighborhood don’t? A house with something spectacular is always a good deal when it’s priced low and able to flip easily. For instance, does a house on a beautiful street look just like the rest of them but feature a massive back deck with views of the water or the mountains that no one else has? Does the house have two master suites that make for a perfect chance for someone’s aging parents to move in? A three-bedroom house with two bedrooms, an office, and an upstairs loft perfect for a playroom might really appeal to parents more than a three-bedroom with just an office. It needs something special.
5) The House Has Been On the Market for a Long Time
Even if a house is not priced where you want it so you can make a profit after flipping it, don’t be discouraged. A winning house might be one that’s been on the market for a long time. Look at houses on the market for longer than three months. If you can find one on the market longer than that, it might be even better.
When people can’t sell, they become more flexible with the price. Of course, sometimes people can’t sell because they refuse to be flexible, and you just need to move on. However, a house that’s been on the market for a while could be a great investment if you can talk the owners down on the price.
Flipping houses is a risk that many people enjoy and that can be very profitable. The key is to find a house that’s better than the rest. Keepers are homes priced low, without too much work needed to make them appealing. Taking the time to investigate your prospective investments carefully before purchasing them is definitely worth it. When you know what to look for, you increase your chance of making a killer profit.
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