How do you Identify a Good Investment Property?
If you are looking to identify a good investment property, be sure to pay close attention to these three things:
Does the geographic location lend itself to attracting a quality tenant that will pay on time while taking care of the property? Is community stable with good schools? Are the area industries diversified and able support a workforce for the foreseeable future?
2. Resale Value
Most investors buy a residential property for a long-term investment, but there are many who prefer short-term holds. Whatever your plan, you should consider the ability to resell quickly, as well as the potential future value of the property if you intend to sell or are forced to sell at some point in the future.
3. The numbers
Know your numbers. Analyze the cash flow by comparing the mortgage payment, taxes, HOA, and insurance costs against your expected rent. All investors want positive cash flow, but some may be willing to take on negative cash flow with the expectations of positive cash flow in the future.
Contact 24 Hour Property Management, Inc.
We’ve helped investors buy and rent properties over the years and we’d love the opportunity to help you locate a great investment property. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.