Simple Tests to Find Good Real Estate Investment Properties I
Before you invest another hour, do yourself a favor and take stock of the surroundings. The old saying in the real estate business that the three factors in selling a home are ‘location, location and location’. What is the location like? No matter how wonderful the property is, you’ll have a difficult time selling it for top price in a bad neighborhood. That does not mean that it’s a bad property – depending on how low a price you can bargain, you still may be able to make a decent profit from it.
Another consideration in the Neighborhood Test is a bit more subjective, and you’ll have a feel for it if you’re local and keep an ear to the ground. Is a neighborhood in transition? A neighborhood that is on the cusp of a renewal effort like gentrification can be a great place to invest, as long as the upward momentum continues. An area that is on the outskirts of new development will often benefit from that as well. If, on the other hand, the neighborhood shows signs of slipping into a decline, you might want to pass by the property. If you can see that the neighborhood is slipping, so Prospective buyers will.
Are there ‘Amenities’ nearby? Depending on the neighborhood and your Prospective market, those might Amenities include a neighborhood school with a good reputation, a corner store within walking distance, or a park right down the street. In one Massachusetts city, for example, the value of properties in a formerly depressed neighborhood skyrocketed when a local university announced a commitment to provide full tuition to the children of the neighborhood