As a small real estate investment investor I own and have owned 4-plex buildings, condo’s, warehouses, and single-family homes. There have been a lot of lessons learned and I am going to create a series on a property investment home I just purchased.
When looking for an investment property there are factors to take in when shopping around. Location, price, area trends, etc. I am going to start with a couple of quick tips as they relate to this current property along with past properties I have purchased.
1.) Use realtor phone apps. Zillow, Realtor.com, Zip, Redfin are all good starts when looking for a property. You can watch the ups/downs, sales, time on the market, neighborhood crime, school rates along with the history on the property. Using these apps along with checking local realtor websites will give you a good idea of the market. Note, I use ALL apps because they don’t always show everything for sale.
2.) Time is on your side. There is no timing the market just a sense of knowing when to buy and when to wait. I have seen people get excited about a property to the point of getting emotionally involved. When that happens you are not going to get a deal or you may miss important information about the property. Those mistakes can cost you later.
3.) Never pay asking price. If you are paying asking or above, then the property is going to be a lot harder to gain a profit on later down the road. Working with a trusted agent, let them know exactly what you are trying to accomplish. If they understand and hopefully are experienced, they should be very helpful in placing a lower offer that makes sense.
4.) There is ALWAYS another property. I have walked away from properties and sometimes I look back and was happy about the decision and other times wished I would have gone after it. Either way, I am still here doing something I enjoy and knowing there is always another property, so don’t get attached and just make common-sense decisions.
These quick tips are exactly what I did with the property I just purchased. I knew the area, which is trendy and growing. I watched the property online for a while and then it went into escrow. BUT, COVID hit and the buyers pulled out and that is when I went in with a lower offer. Last, if I did not get the property, no worries, life goes on. But this time it worked out.
I will get in more detail about this purchase on the Blog Series I will post during this process of buying, rehabbing and renting this property.