ICYMI our first two tips were Define Your Goals and Right Property, Right Price. So once you know your goals and you know what kind of property you’re going to be looking for, you need to understand you neighborhood.
Knowing your neighborhood and community is a key factor to your property’s success, so spend some time getting to know the area. Drive around, run a few google searches, and call a local Realtor to help you get a closer look.
Is it rental friendly?
If your goal is to rent, this is a pretty big deal. Some neighborhoods aren’t fans of rental properties. Some will have stricter HOAs that may have conflicts with tenants, but ultimately the responsibility will lay on you as you’re the home owner.
On the other hand there are plenty of neighborhoods that are really rental friendly. A good way to help ensure some neighborly love is to spruce the place up a bit. Don’t break the bank if you don’t have to, remember ALWAYS stick to your budget. A few flower beds can be beautiful and inexpensive. Be sure to give the whole facade a once over. Wash the door, clean the windows, touch up the paint.
Be sure to you’ll be bringing value to any neighborhood you plan to buy in.
How’s the market?
Before you buy a home, for flipping or renting, you want to know about the market. What’s the average price of homes sold in the community? How much do similar rentals go for? You want to be able to compare prices to homes that have the same floor plan or number of rooms and square footage.
Another key factor is how long do homes stay on the market in the community? With an investment property you don’t have the stress of also buying a home to live in while trying to sell. There are other stresses though. Every day your home sits on the market is money you’re losing in rent and spending on utilities, taxes, and maintenance.