Don’t judge a book by it’s cover when determining if a home has potential to be a good rental property.
Reality Check One: Who is Your Target Market?
If the property is a good fit for your target market, it doesn’t matter if you wouldn’t live there. A renter may cherish the property.
Reality Check Two: Are you too Emotionally Involved?
This is an investment so you should be more detached emotionally about this purchase than if you were buying a home to live in. If, at any point in the negotiations, you feel you can’t walk away from the deal, you need to take a step back and review everything!
Reality Check Three: Are the Numbers Really What They Say They Are?
The numbers might look good on paper, but will the rent cover all the expenses? Make sure the numbers are what the sellers say they are. Get copies of any leases to verify rents. Check market rental rates for the area to make sure the current tenants aren’t under or overpaying. And make sure you obtain copies of the bills you’ll be responsible for (taxes, utilities, insurance, etc.).
Many opportunities are missed because a property makes a negative first impression. The best deals are often those that look rough but can be easily rehabbed. Some properties may need a major face-lift to maximize its potential – but don’t judge a property strictly on its looks or you may miss out on a deal that could pay off big in the long run.
Call/Text 480 888 6708 or email me with any questions you may have about buying a Fountain Hills/Scottsdale investment property.