From a very young age, I decided I loved real estate and owning property. I've learned what to look for and what to walk away from. I tell my clients everyday, "If it looks too good to be true, it usually is!" I always advise getting a home inspection! So when you think about investing in real estate, you should always think homework, homework, homework. There are three main things to look for when seeking out the right investment property for you.
What Makes A Good Property
+ Location is key. Your investment needs to last for years to come. The home does not need to be in the most expensive area of town. I look for homes in up and coming neighborhoods. These can be older areas of town that are turning over with younger buyers or joining neighborhoods that have already started to turn. I drive the neighborhoods for my clients and have lunch at the local cafe to get a feeling of what is or what isn't about to happen within an area.
+ Size of the property. Smaller, more manageable homes are easier to maintain and keep a lease in place. Larger homes tend to be a turn off for younger renters or those needing only a short-term landing spot. I have found that twelve to twenty-one hundred square feet is the sweet spot when looking to buy an investment in the Nashville area. These homes rent fast, maintain value better and keep renters in place longer.
+ Return on investment. Whether it's a long or short term investment, you should always make sure the house isn't costing you money after the first year. Things to consider are HOA fees, upkeep (a sided home will require more maintenance than a brick one), size of lot and age of home. Obviously, older homes will require more repairs than newer ones.
Berkshire Hathaway Home Service, Woodmont Realty