02/09/2023
How do you identify a good Real Estate Investment?
1. Look for properties in desirable locations with high rental demand such as near a desirable school or downtown social center.
2. Check for properties in areas with strong job and population growth.
3. Ask the seller about maintenance costs and (if it was used as a rental previously) vacancy rates.
4. Compare local rental rates to purchase prices. A low purchase price doesn't mean much if you only get $400 in rent.
5. Multi-family properties like duplexes usually have greater potential rental income to the sales price. This is because there are fewer buyers looking at multi-family than single family, and the seller is less likely to have emotional attachment to the property.
6. Investigate properties with amenities that will attract tenants, such as laundry facilities, parking, or proximity to popular restaurants.
7. Research properties that offer potential for appreciation in value, such as those in up-and-coming neighborhoods. A higher price may be worth it if the rent will increase faster.
