As the real estate market continues to recover and interest rates threaten to rise once again, many new investors find themselves wondering just what makes a property valuable. While some value lies in the eye of the buyer, certain attributes naturally increase—or decrease—the overall worth.
Amenities inside the Home
If you plan to rent out your investment property soon after purchasing, look down. How do the floors look? Wood or laminate flooring attracts great attention, and it tends to age more gracefully than carpet. If the floors are already taken care of, then you have one less thing to worry about.
Though less visible, the heating and air systems hold every bit as much importance. As these systems are prone to issues, they typically warrant additional inspections. During the inspection, ask specifically how much longer the inspector would reasonably expect the unit to function. The last thing you want is to buy in summer and need to replace the heater as soon as winter rolls around.
Now, take a closer look at the neighborhood. Are the surrounding homes occupied or vacant? If the area appears to be vibrant and active, then your chances of finding reliable tenants skyrocket.
Remember that it is illegal in most states to deny tenants based on age, race, or demographic. However, there is nothing wrong with purchasing a property with your future tenants in mind. If you envision renting to young families with children, make sure that the neighborhood is safe, provides access to a park, and is located within a highly rated school zone.
Remember that there will be times when the property is not occupied. Make sure that you will be able to financially survive more than a few months without a renter. While power and water can be turned off during vacant periods, the mortgage, Home Owners Association fees, and insurance won’t stop.
If you’re ready to begin your journey as a property investor, The Marshall is here to help. We look forward to showing you around our available listings and helping you find the best investment for your situation. Call The Marshall today at (801) 566-9500!