Property Management Blog

Questions You Need to Ask Before Purchasing Your First Rental Property

Terry Mrochko - Wednesday, August 09, 2017

 

Being an owner of an Palm Coast rental property can prove to be quite beneficial for you. If you make the right investment in the right property, that could ensure high profits for a really long time. However, before you go ahead with the final decision of purchasing a property, there are several aspects of real estate that you need to consider.

Generally, most people will just find a property and invest without even questioning or thinking about the basic pointers that could make a huge difference in your investment and the amount of return that it gives. Most of these questions are not even that technical to begin with. Here are the 3 most important questions that you need to keep in mind before making such a huge investment:

1.     What are the features and benefits of the property you are planning to invest in?

Each property has a set number of features that may or may not suit you. Every person has an ideal investment property in mind that needs to have just some certain qualities that can make or break their decision of investing in the said property. Apart from any personal preferences that you may have about any property that you plan to invest in, there are some basic features that the property really should have to convince you to make the final investment.

Neighborhood

Neighborhood of the property is the most important feature to consider. The neighborhood of the property makes a huge difference as it may be located in a spectacular place but if the neighborhood is not good, then that just rids the property of its charm.

Recreational spots

It is an added benefit if the property has some recreational places nearby for the tenants to enjoy. That may also increase the value of your property in the future.

2.     How has the price history of the property been?

Finding out about the property’s pricing history may seem a bit extra to some people, but it is a very important question to ask. Here is why:

Factors

Property prices fluctuate all the time but the factors that cause the fluctuation are what you need to focus on. First you need to find out whether the property you are interested in appreciates more or depreciates. After that it is vital to do your research and figure out why such changes occurred at all.

3.     What is the condition of the property?

Mostly, the properties available for sale need massive repairs and renovation. They have not been maintained or checked on. So before investing, you need to be aware of any such situations about the property.

Repairs

Find out whether the property requires any type of repairs and how bad the situation is as that will reflect the cost of getting the repairs done. For example, if the foundation of the property is not strong then that can be very expensive for you to fix.

Weigh the costs and benefits

While some repairs or changes can be helpful to your profit margin, there are other costs that will give you no return. So before making any commitments, ask around and do a detailed check on the costs that need to be incurred.

For all of these necessary questions, the Everest Property Management can help you in making the right, informed decision about your investment property. They can run the checks about the property that are required by you to ensure that it is the best choice for you as an investment that will give a good return on the investment.

If you’d like to talk more about the value of inspections, or you need help with Everest Property Management, please contact us at Everest Realty.

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