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Real estate investing can be lucrative, but it takes more than just cold hard cash to turn a profit. Nevertheless, savvy investors have learned over time what to look for when considering a purchase that a less experienced investor might not consider. So before you buy any property for investment purposes, there are seven things that you need to look for in that property first.
1) When the Windows Were Last Upgraded
A home's window treatments are both major internal and external factors regarding resale value. If the windows are old and drafty, a buyer might not be willing to pay a large sum of money for that property. Therefore, when you are looking at an investment property, it is also worthwhile to take note of the last time the windows were replaced and consider replacing the window treatments with a modern design like custom plantation shutters.
2) How Well Does the Roof Hold Up
Investment properties get exposed to all sorts of weather conditions. If the roof or siding isn't properly weatherized, it won't hold up to normal wear and tear. If it's been more than ten years since the roof was replaced, or if there have been major weather events in the area recently (like hail or hurricanes), then replacing the roof is going to be necessary.
3) Under-Utilized Land and Excess "Fluff"
Real estate investors should take particular notice of properties with any sort of excess "fluff" on the lot. For example, this might be a tool shed or a small unused area that was intended to be used as a garden space. If you can't see yourself ever using all the land that comes with your investment, it's probably not wise to buy it.
4) Garage Space Matters
Garage space is everything when it comes to most real estate today. Most buyers are looking for at least one garage space with their property purchase. So you've got a better chance of selling your investment down the road if you can offer them that.
5) Room Sizes Matter Too
Another major consideration that savvy real estate investors take into account when looking at a property is the size of each room. Room sizes are important because they can affect the potential resale value and what kind of buyer might easily purchase a home with smaller rooms.
6) Upgrades Count, But Be Careful!
If you upgrade your investment property, make sure that those changes count as something positive for future resale value. Otherwise, you'll be stuck with an investment that has a lower value than what you paid for it because of those upgrades.
7) When Was the Property Last Listed and Sold?
The time of year when a property was last listed and sold can also be important to know if you are thinking of buying the home yourself. This is because you'll find less competition for homes that sold early in the year than those just listed recently.
Closing Thoughts
All of these factors are good to consider when looking at an investment property. However, if you research each of them before your initial purchase, you will have a much better idea if the property is worth buying in the first place.