There are plenty of things that can make a Real Estate investment good or bad, and most of them are around how much time and money you’d have to invest in those properties! A good deal is something you know you’ll get your investment back and some, but how can you know if it’s really worth your while? See this list:
-It meets your needs.
First things first, you need to see what it is that you actually need from this investment previous to checking any properties out! If you want it for a rental, know how much you want to have of positive cash flow from it every month and then see if the Cap Rate of certain properties fits your needs! If it’s for flipping, know how much you’re willing to invest into the fixing portion of it! You’ll find the houses that fit your needs much easily with this method!
The thing with vacancy rates, it’s that if they’re going up it means people are leaving the city or community which is bad for any kind of Real Estate investment ever, because the neighborhood might be beautiful, but if people aren’t staying there, something must be wrong! It doesn’t matter if you’re looking for a rental or a flip in this situation! The vacancy rates in those areas need to be going down or under 10%, preferably 5%! If those aren’t around that, stir away from the area as you might be stuck with a property you don’t want that isn’t producing anything at all and no one will buy!
If you see progress, start there! Nowadays you can see cities growing everywhere! You can see it by the ways the markets around it are growing, and generating job opportunity! The schools are growing and overall people are more involved in it! The more others invest in a zone and it grows the better it is for Real Estate!
Check the area’s closed sales! Those will be super helpful whenever you want to invest, it will give you an insight in the price range and market value of the property you’re interested on! As always a great tool for every other kind of investment, compare!
An appraisal can be a very terrifying concept, because it might lower the price of a property, but it will also give you an idea of what you’re paying for, and with that you’ll see if it’s worth the trouble and save some money for your next one!
The only thing you should worry about is starting! If you don’t risk a little bit when investing you won’t invest at all! It’s a scary thing to do, put your neck on the line so we suggest you do it with people who support you and are experienced in the area! If you’re looking for that, here in IRG Corporation we need you! We are currently hiring someone who is willing to dare into the Real Estate market! So hop in, and fill in your details to start out on this beautiful field!