Not everyone has the same background, experience, knowledge or money to buy the same type of properties. What might be right for one real estate investor might not be best for another. You have to know what you’re buying.
There are several things you can do to quickly analyze a property and neighborhood.
- If there are a lot of for sale signs, this could be a red flag. Knock on the doors of some of the properties and ask why they are selling.
- If there are too many rental signs, it might not be best for you since there are so many rental options in that area.
- Ask yourself if the neighborhood looks like a homeowner neighborhood. Is there pride of ownership and the property is being taken care of?
- If it’s not a place I would be comfortable living in, then it’s not a good option.
- If you wouldn’t send your wife to that neighborhood at night to collect rent, it’s not a desirable property.
- Consider the age of the property. If it’s going to need a lot of work or it if has tiny rooms with no walk-in closets, your rental potential is weak.
- Look into how recently homes have sold in the neighborhood.
- Check the police reports on the area to see if the crime is high.
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