How To Analyze Investment Property Listings Before You Buy

When purchasing a property for investment you have to get past the professional photos and price and see the potential.As an investor you need to sort through the listings to determine what matches your investment criteria.Once you determine a match you can explore other factors when making your decision. To help you pick a great investment rental property there are several factors to consider when looking at listings:
* Past Sales History
* Explore The Neighborhood
* Return On Investment (ROI)
* Know What Is Included

Past Sales History With the internet it is easy to look online to find the past sales prices of a home. Check to see if it has sold many times in over a period of time . If so, there may be a problem from maintenance issues to lack of tenants in the area. Be sure to carefully evaluate the home.
Neighborhood Search Explore the neighborhood as not every home is a prime location. Is the area in decline or a high crime rate area? Select areas that will be in demand for rentals.
ROI An investment property does you no good if you can’t make money. It should rent for at least 1% of the purchase price. So if you purchase a home for $140,000 it should bring in at least $1400 in rent per month. In some areas investors look for 1.5% or 2% Return On Investment.
Know What You Are Getting Pictures don’t always tell the entire story. The photo may show all the appliances in the kitchen but you need to know if they are included in the purchase price. There might be a tenant living in the home and you need to know if they are moving out when you purchase the home or if they are staying what the lease terms are. This information will determine your future ROI

Never purchase a property based solely on these factors. This is a way to help filter out 99% of the homes listed so that you can dive more deeply into the 1% that meet your investment criteria to determine what will be a fit for you.

Information is deemed reliable but not guaranteed.