Are you ready to jump into real estate investing? Or are you looking to acquire more real estate in your portfolio? Whether you are a new investor or an accomplished investor, there are several key property features you should be aware of when choosing a property to invest into. Continue reading to learn the ins and outs of real estate investing and what key property features you should always look for.
Location of Your Property
The location of your property is one of the most important property features you should think about when investing in real estate. Location is extremely important when valuing your property in the market. Properties with good locations are valued higher, and sell faster. Renters want to live where they have close amenities like hospitals, shopping plazas, or public areas. These amenities offer jobs as well, so it’s beneficial to purchase a property located within a growing job market. Think about the school system where you are purchasing your property if your plan to rent to families. An area with a good school system and a low crime rate will be deemed more valuable when dictating the cost of rent. Depending on your area, property taxes can also differ. Think about the costs associated with owning the property, including the costs of potential natural disasters.
Positive Economic Indicators
When making any real estate investment decision, you must think about the economic indicators in the current market that will impact your investment’s profitability. To maximize your investment, look at the macro events that will impact the real estate market. Think about how you can use macroeconomic events to your advantage to maximize your property’s profitability. You should always run a comparative real estate market analysis to deem the cash flow probability of a property. If you are investing for the long run, timing the real estate market is not something you have to necessarily worry about. Short term investors should always consider the macro and microeconomic events taking place in the real estate market when investing.
Valuation of the Property
Before committing to an investment in the real estate market, properly valuate the properties you are looking at to determine how much cash flow they can generate. You want to make sure your home is an attractive place for tenants. Renters want a home that has curb appeal and is upkept. Make sure your property will leave a good first impression when narrowing down the investment options. Compare your property to other similar properties in the area to get a good idea of the potential cash flow. If your property has construction that needs to be done, that will affect your property’s valuation as well. The profitability of your investment is truly determined by the valuation of your investment property, so be sure to crunch the numbers before investing. After valuating your property try adjusting the numbers and factoring in different events that could change your overall profits to get a better understanding of the potential risks you may encounter.
Avoid purchasing a property that you think will depreciate overtime. A good investment will do the opposite and generate value through appreciation as time progresses. Build your wealth by investing in real estate that appreciates overtime. Given a healthy economy, your real estate investment should increase with value and eventually you’ll be able to offload it easier. Many real estate investors like to buy and hold properties, giving them less risk while still making generous profits. Rental income is a form of a short-term reward, but appreciation will help determine your property’s long-term return and resell value.
RCN Capital offers short-term and long-term financing options for real estate investors. Whether you are looking to fix & flip properties or hold properties for rental income, RCN has flexible options that are suited to your needs. Connect with us today to discuss your next real estate investment.