Things to look out for in an investment property
Posted by Techyscouts | Posted on 07/10/2023
With over 20 years of experience, Michael Millea helps with all aspects of the property purchasing process throughout Los Angeles. Purchasing investment properties is a great way to earn considerable and reliable monthly income. But first, you’ll need to find and buy high-quality investment Properties/Assets.
Sometimes, real estate investors get so caught up researching properties that they forget to zoom out and look at surrounding neighborhoods. Checking out neighborhoods ensures you don’t buy a great-looking property surrounded by ones in run-down condition. Most potential tenants also don’t want to move into neighborhoods looking like ghost towns with lots of vacancies and “for sale” signs. Best to remember the age old real estate adage when purchasing Investment properties: “Location, Location, Location.”
Nearby Amenities and Attractions
If you live in a big city, you understand how convenient it is to have everything nearby. Most people don’t want to drive for hours to visit shopping centers, restaurants, movie theaters, and other areas of interest. As you drive around neighborhoods, see what’s around these areas. For instance, an investment property in South Bay would fetch higher prices than one further from the Ocean.
Rental Costs of Similar Properties
Whether buying an investment property in Torrance, South Bay, or elsewhere, don’t forget to research the prices of nearby properties. If not, you risk leaving money on the table by purchasing an overvalued property or not generating enough rental income because everything nearby is much cheaper.
How Much Maintenance a Property Needs
Many buyers want to purchase Investment Properties that are desperately in need of maintenance work.This allows for the Buyer to build “Sweat Equity.” For instance, an investment property in South Bay with busted windows, damaged doors, and other signs of wear should be cheaper than a pristine property in the same area. This is something that Mike Millea can definitely assist with by providing you with the most recent comparable sales.
On the flip side, well-priced, immaculate investment properties can quickly fetch you lots of interested high paying residential tenants.
Watch out for these signs of properties in need of maintenance work:
- Properties in need of painting or maintenance work
- Stains on walls and ceilings from water damage
- Damaged doors and windows
- Non-working cars parked on the property.
- Lots of holes in the walls
Helping You Find the Best Investment Property
Considering the time and money required to buy rental properties, having a real estate professional in your corner is smart. Whether you’re buying an investment property in Torrance, South Bay, or elsewhere in the greater LA area, contact Michael Millea to have an expert’s help throughout the property purchasing process.