How you select an investment property will have a major impact on your success and the return you’re able to earn on that investment. Today, we’re sharing some things that are important to look for when you’re buying an investment property.
Age of the Home
The first thing I look for when I’m shopping for an investment property is the age of the home. You want to see that this property still has some economic life left to it. You don’t want to be the last buyer before the house is torn down. Look for a property that is under 50 years old. The best case scenario is to buy a property that is under 20 years old.
Condition of the Home
After you’ve established the age of the home, go into that house and quickly look at its bones. I do this as best I can with a basic inspection. I want to see that the roof looks decent, the air conditioning looks decent, and the furnace and condensing unit are working properly. What you’re really looking for are structural issues. Walk around and look for cracks. If there is a crack in the bricks, I start to get worried. You don’t want to see any kind of foundation settling.
Look for leaks or other water issues. Check out the water heater, and make sure it’s under 10 years old. Large ticket items that might cost a lot of money should always be considered. You put out cash when you buy an investment property, and if you don’t consider these things, you’ll get less of that cash back quickly. In Columbus, we use air conditioners a lot. That means they are replaced a lot. So, I always check to see if the air conditioning is functioning and in shape. This will save you money and help you start earning a return on your investment quickly.