There are a lot of houses out there; some are good deals, some are not. How do you know you’ve found a diamond in the rough? That’s what we’re going to discuss today, and with just a little practice, it’ll become second nature for you to pick out the real gems in your marketplace.
Here are some questions you need to ask yourself when looking at any property:
1. What makes you think a property that you’re looking at is a real gem?
Why do you think it’s a good deal? Is it because of the location, the size, the number of bedrooms or bathrooms, or the price or terms?
2. How long has this property been for sale?
Has it been on the market for a long time? If so, why hasn’t it already sold? Is it the price, neighborhood, the seller being inflexible, the property is in serious need of repairs, etc? If a property has been on the market for a long time, do your homework.
3. Has the property been taken care of well?
4. Is the property on a nice street?
5. How big is the kitchen?
Whenever I purchase a property, I put all my rehab money into the kitchen, living room, and bathrooms, because that’s where most people are most concerned.
6. Is the bathroom small?
7. Does it have a poor floor plan?
8. Does it have a garage/small garage?
9. If it has a pool, does it work?
Does it need to be cleaned or the sides need to be repaired?
10. Is the lawn in good condition?
Is the sod torn up from vehicles? Is the landscaping in good condition?
11. How old is the roof?
If the roof is older, you’re going to need to get it repaired so you don’t have issues down the road.
12. Are the sellers motivated?
Have you talked with them personally? Are they flexible on the price? Will they entertain terms? If the property is listed, is the agent willing to let you talk with the seller? What do the sellers REALLY want?
13. “Why would you sell a nice house like this?”
Make sure you ask the right questions so you get the right answers.
14. What repairs need to be done to get it into either rental or sale condition?
Most of the time, rehabs for a rental will be significantly less involved than if you were rehabbing the property for resale.
15. How old is the property?
When was it built? The older a house is, the smaller the square footage. The decade the house was built in also determines the layout of the floorplan.
16. What does the buying/rental public want?
17. What is the neighborhood like?
18. Are the streets well-lit?
19. Does the neighborhood show pride of ownership?
20. Are there many For Sale or For Rent signs on the street?
Make sure to visit my website, LarryHarbolt.com, for all your real estate investing education needs.
Also, please make sure you leave me a review on your podcast player so I know I’m continuing to provide you with quality content.
Good Luck and Happy Investing!