Whether you’re looking for your first rental property or fifth, you’re always looking for a good deal. You want the hidden gem that no one else has noticed. Some investors are looking for properties that need a little fixing up, while others are looking for homes that are immediately ready to rent out the day they purchase them. Luckily, there are many ways to find real estate investment properties that fit your budget and condition requirements.
How to Identify a Good Investment Deal
You like the house and the neighborhood, and it seems like a good investment. But how do you know it’s a good deal? Here are some things to consider:
- Are there zoning issues or liens on the home? If yes, it isn’t a good deal.
- Price is less than 100 times the monthly rent signifies it’s a good deal.
- The One Percent Rule states the monthly rent should be at least one percent of the amount you need to borrow for the mortgage to be a good investment.
- Check out the roofline. Is it clean and simple? Does it look sturdy? You can tell a lot about the structure of the home from the roofline.
- Check out the purchase price vs. the county appraisal value. If the purchase price is significantly less than the appraisal value than it’s probably a good deal.
Online Resources for Finding Good Investment Properties
Finding hidden gems and good investment properties online is easy if you know where to look. You can find investment properties of all sorts at varied price points and in various conditions. Here are a few online resources that you need to know and review frequently while searching for a good investment property.
You can find more than a lost pet on Craigslist. It’s important to note that there isn’t anyone certifying that the listings are real and reputable. This online resource allows you to look for properties all over the country and the world. Once you select an area and country, you can use a variety of attributes to filter your results.
You can even enter terms, such as “as is,” “foreclosure.” or “short sale” to limit your results. Most of the properties listed on the website are offered up by the homeowner with a few of the distressed properties listed by real estate agents. Some listings have pictures included while others don’t. You might be able to find a rental property at a discounted price but you might need to put a little work into getting the property rental ready.
This user-friendly website makes searching for properties a cinch. If you want to start with a basic search, you just enter an area of the country, and the website shows you the available. On Trulia, you can search in your price range, or use the filters to locate homes or commercial properties that are in foreclosure.
One of the best features is the ability to see school and crime statistics for the area that you’re searching in. Once you select a price range and start looking at a particular home, the website shows you comparable properties, so you get a better grasp on offerings in the area within your price point. You can also read articles on market trends and recent real estate news.
When you’re searching for commercial properties for sale, LoopNet should be your first website visit. You can add attributes that you’re looking for in a commercial property, including price, square footage, and date of sale. If you know the area you want to invest in, you have the option of entering a street address to see available properties.
When you’re looking at a targeted area, you can search the property records of specific properties. These records include essential information, such as owner information, tenant information, or tax information. This information can really help you determine if the property is a good investment opportunity or one you should skip.
As the official site of the National Association of Realtors, Realtor.com offers millions of listing throughout the United States for you to search. These listing come from 800 Multiple Listing Services (MLS) databases, where individual real estate agents add homes that they’re listing for sale in their local area.
When you type in a street address or zip code, you can receive a report covering the value of homes in the area. However, you must provide your name and email address to get the report. SearchAssist allows you to sign up for emails of new property listings that meet your criteria.
At RealtyTrac, you find a huge database of properties that are currently in foreclosure. In some cases, a foreclosure property makes a really good investment property although you have to be careful about the current condition of the home. Some homeowners trash the house when it goes into foreclosure, and they face eviction.
The website also offers listings that include MLS listings, auctions, and bank-owned homes. You can find a wealth of information on the foreclosure market and articles that help you understand how foreclosures make a good investment. There are statistics available on the foreclosure market to help you see the overall picture.
You guessed it! You can find all sorts of properties that are going to an auction on this website. Auction.com includes offerings from REOs and short sales to commercial real estate and luxury real estate. These auctions take place at a variety of places, and you can even find online auctions that you can participate in online. Some other auctions are done at a courthouse and require an in-person visit.
Before You Begin Searching For an Investment Property
Search options include looking at specific areas or types of properties. Each property shows the first and current bids along with the type of auction it is. You can view the auction calendar that shows the number of properties available at each event.
At Nomadic Real Estate, we understand how important it is to you to find the right investment property and then manage it properly. We can help you with property management so that you can make the most of your investment. Contact us today for more information.