Every investor has to ask themselves this question sometimes: “What the heck should I be buying to build my portfolio and cash flow?”. For some people, what they care about most in an investment property are:
- Income ability of the property
- Whether the property is or is not listed on the MLS
Most investors DON’T think about some of these important aspects of the property that could seriously impact your bottom line:
- The highest and best use of the property itself
- The number of bedrooms, bathrooms, and overall size
- The amenities: the lot size, a paved or unpaved driveway, a pool, a garage, etc.
- Home owner association (HOA) fees
- Special assessments owed on the property, i.e. new utility work
- Active code enforcement leads
- Updated cooling and heating system
- Size of the kitchen
- The types of windows
- The type of flooring
- The exterior siding or paint
- The current state of the foundation
- How close is the property to a busy street
- Architectural features
- Layout of the rooms
- Condition of the neighborhood roads and sidewalks
- The overall curb appeal
In the end, you need to decide how hard you want to work and how much you want to spend on each of your houses. Be mindful and do your homework on EVERY SINGLE PROPERTY you come across. This is how you’ll make more money on every deal you do. Otherwise, you’ll make some costly mistakes.
For all your real estate education needs, visit me online at LarryHarbolt.com.
Good Luck and Happy Investing!