What should I look for when quickly walking through a prospective rental property?

Obviously everyone should get an home inspection, but what I can personally look for as an investor when walking through a property I might be interested in purchasing? What are the biggest warning signs I should look for that will make me want to run? And what are positive signs that this is a good property?

Answer:

Well there are many factors involved in looking for and eventually purchasing investment rental property.First your budget is important ,do you want to purchase a near or total rehab ,look at the three most major areas in the home where you will spend the most money ,kitchens ,bathrooms, and the furnace and hot water tank.The roof would be another major area to look at. Foundation and wet basement problems,proper drainage of all waste pipes, if not checked before you purchase could be a big headache waiting to happen in the near future.

Even in rental property location location location is very important, especially where crime areas could impact your comfort zone in purchasing the property , and it also impacts how much you can charge for rents.Also keep in mind as a beginning landlord you will most likely take care of the bulk of maintenance, so factor in how far the home is from where you live,it makes a big difference if there is an emergency.

For myself I like to look at how soon I can make the property rentable , if I can do it under or at budget, the location I want to invest in , and what is the going rate for rentals in that area.


Views: 1657        Posted on: Apr 10 2012        Tags: Buyer, Rental, Home Inspection