07/12/2025
If you’re looking to purchase a property as an investment but you don’t know where to start or what to do… here’s something you should pay attention to:
First
you find comps, or comparable properties. In most areas you want properties near the same age, bed/bath count, square footage, and lot size. Find 3 to 5 comps within a mile. They should have been sold in the last 6 months. If the comps cross rivers, railroad tracks, or are in different communities they may not be good comps. Make sure the bathrooms, kitchens, and general conditions are fully updated, and match the condition you’ll be bringing your house up to.
This will help you understand what your property could be worth fixed up.
Where do you get comps? A realtor can help you, but you can also use Zillow, Redfin, and many other free sources to get a good idea. There are also paid software options.
Next, estimate the rehab. Get general contractors to walk the property and give you bids. Never go with the cheapest, never go with the most expensive. Make sure you show the GC the photos of the comps in the area and say “I want the rehab to look like this, no more no less” otherwise each GC may be bidding a different outcome and you can’t compare their numbers.
Next don’t forget to calculate holding costs. This will be insurance, taxes, HOA fees and interest on your hard money loan while the property is being rehabbed. Typical rehabs are 3 - 6 months, but make sure you understand how long yours will take.
This will give you a good idea on the deal and if you want to move forward.
If you need any help with buying or selling a property In Sarasota or Manatee county, feel free to reach out.
