Real estate investment requires a keen eye for profitable properties. But sometimes, it can be challenging to understand what makes a home or building worth pouring your money into. Fortunately, this quick guide points out some of the most common indicators of solid property investment.
It’s in an Excellent Location
An excellent location is one of the telltale signs a property is a good investment. Basically, the better your property’s location is, the more likely you’ll see hefty returns when it comes time to sell. So, it’s wise to pay attention to your property’s proximity to attractive amenities, such as:
- Shopping centers
Of course, it never hurts to look at where your property might fall on the local real estate market, either. You can compare your property to similar ones in the area to get a rough approximation of its market value.
It’s Repaired or Renovated
Part of ensuring you’re making a solid investment is taking the time to evaluate the condition of your potential investment. So, when you visit the property, look for signs that it’s been repaired or renovated within the last few years.
You can do this by examining features such as siding, window treatments, and the roof. You can also check the condition of the interior’s paint, appliances, and flooring. If the property appears to be up-to-date and well-maintained, it’s a telltale sign a property is a good investment.
Shows Signs of Structural Stability
Seasoned investors also inspect the rooflines of a property for signs of structural stability and strength. You might be surprised to learn that examining a roofline speaks volumes about the structural condition of your investment, including the following:
- Vulnerability and weak spots
- Proper drainage
Rooflines can also indicate whether a structure is simple, elegant, or complicated. They can also show whether a design is original or if it’s been modified over time.
Because the roofline is such a revealing feature, it’s worth it to have a contractor come out and take a look before you sign off on a property. If your roofline is in excellent shape, it means the structure is solid.
Purchase Price Is Below the County Appraisal Value
It’s wise to review the county appraisal value of the place. Then, stack the appraisal value against the market value of your property. It’s a simple process, and it’s one of the most effective ways to glean how much profit you can make from your investment. Each county has an appraisal value system to determine the value of each property in its jurisdiction.
Sometimes, these evaluations rank properties at much higher values than their selling prices. And if your property’s selling price is way below the county appraisal, it’s almost always indicative of an excellent deal.
Why? Because the market determines the fairest price for your property by adding the county’s appraisal value to twenty percent over their assessment.
Hopefully, we were able to provide some valuable information on what to look for when determining the profitability of your property investments.
When it’s time to finance your investment, call LJC Financial. Our hard money loans in Houston and throughout Texas will ensure you get the funding you need.