Many beginner real estate investors don’t know how to find properties that show signs of opportunity because they are only looking in the normal listings. You have to drive through neighborhoods and look at the houses that show opportunity. “Pretty houses” normally aren’t going to be a good investment. So you must pay attention to the homes that need work.
I have found certain neighborhoods that I drive through frequently. These are good neighborhoods where people want to live. So I look for the worst houses in those desirable neighborhoods. When I find one, I look at the county property appraisers website to see who the owner is and where the appraisal is sent every year. I also do further homework to see how much rent it would produce and if there are any other mortgages on the property.
Sticking with areas that I know allow me to make sure renters will want to live there because the neighborhood has the following characteristics:
- Good Schools
- Close to hospital and churches
- Near a bus line
After I find a property in one of these desirable areas, there are several factors I look for:
- The property must be in good condition.
- If I can negotiate to make a monthly payment that’s less than what the house will rent for
- The property doesn’t have multiple mortgages or debt against it
- A situation where a seller has only one property has to sell
- It’s close to me where I can visit often and keep an eye on the renters
Negotiating from a position of power will allow you to find opportunities that others can’t. Learn what questions to ask and how to do your homework so you can gain this position of power. Visit www.larryharbolt.com to access this information to become a better real estate investor.