Once you have decided that real estate investing is your next move, it is very important that you start looking for a good property. There are a lot of people who are going to try to sell you a property without even realizing that they have no idea where and how to find you a great investment property.
Here are 5 important things to look for when you are purchasing an investment property.
Ability to Choose Your Own Property Manager.
Cash flow is the money that’s left after all the expenses related to the purchase of the property are paid. It can be hard to believe that there are any monies left over after paying for these expenses which are the mortgage, insurance, and property management fees if you are not collecting the rents and repairing the property, which I do not recommend.
Cash flow is a vital part of investing in real estate, and many investors see positive cash flow from their properties. Usually, I suggest looking for at least $200/month for single family homes and $150 each door a month for multifamily properties.
Even though a cash-flowing property can be easily bought, it has to be affordable to buy. Usually, the average investor needs to borrow up to $20,000 down and then spend another $3,000 in closing costs.
When buying a property, make sure that you are dealing with a reliable and trustworthy seller. @ 912 Properties LLC, we provide access sellers of turnkey rentals that are completely transparent.
One of the most important factors when buying a property is to make sure that the seller is transparent. If you can’t trust the seller, how do you know what you are buying, how confident are you that they made the correct repairs.
If you’re looking for a property that’s cash-flow positive, then you need a property manager. 912 Properties LLC has a dedicated team of property managers that will handle the day-to-day operations of the property.
You can use any property manager that you want but be aware that some turnkey property managers will typically charge a flat fee for their services and then pocket the difference after the sale.
One of the most important factors when it comes to buying an investment property is attracting good tenants. A good property should have features that will attract potential tenants.
Here are some of the features.
– close proximity to employment opportunities
– fenced-in yard
– attractive rehab
– nearby parks/playgrounds
– local cafes, restaurants, etc.
Some properties may not need every feature that you want, but they should still have some of these. Although these are the top five factors to look for when buying an investment property, there are more things that you should consider before making a final decision.