MOST IMPORTANT FACTORS TO CONSIDER WHEN LOOKING FOR YOUR NEXT INVESTMENT PROPERTY

You found your perfect investment property and you are ready to sign. However, are you 100% sure that you are making the right choice?

Thoughts like “I should have researched more”, “I should have waited a bit longer”, ” I should have been more patient”, come to your mind but there is no way back.

In order to avoid having regrets when selecting your next investment property, we are presenting you one of the most important factors to consider when making a final decision.

History

It is imperative to obtain a list of all repairs and capital improvements, if any, that have been completed on the property over the past ten years.

Knowledge of previous repairs will better allow you to calendar out when future repairs and/or replacements will be needed. This will assist in estimating future costs that may be incurred.

Failure to make the right assessment could lead to potential delays and significant negative impact on your future return on investment.

Motivation to Sell

Asking what the motivation is to sell the investment property is a question that plays an important role in the process.

The sale of large investments, such as a multifamily property, is a strategic transaction and shapes the outcome of the sale.

Simple questions such as why the seller is selling can aid in determining if you are wasting your time offering below list price.

Bring in the Experts

Hire your own expert inspector before purchasing a property. By obtaining an independent review from the seller’s inspection reports

If you choose not to, you may save some time and money in the short term, but should a problem appear later on that could have been caught before the sale was finalized, you will have to take on the financial responsibility to cover the repairs and maintenance.

Talk to Locals

Who knows better about the area and possibly the property itself than the locals?

Neighboring communities and business owners can provide valuable insight as to the market and about the property itself. They may disclose material facts that the seller might not think are important to mention.

Take the time to drive through the city in which the property resides, as well as some neighboring towns to get an idea of “a typical day at the property”.

Are There Any Major Repairs To Be Considered?

Ask if there are any major repairs you should consider in advance.

This can give you an idea of capital outlay above and beyond the sale price of the property itself.

If there are some major repairs pending, you may be able to request credits if the seller is unwilling or unable to do the repairs him/herself.

It is so important to do your due diligence before committing to a large investment such as a multifamily property.

MOST IMPORTANT FACTORS TO CONSIDER WHEN LOOKING FOR YOUR NEXT INVESTMENT PROPERTY