Real Estate Broker · Kansas City, MO · Member since 2014 · 20 posts · 5 votes
What are some undesirable property attributes that a new investor might not think about when purchasing a property? For example, being across the street from a school sounds like a plus, but I am told that it is a negative (or at least doesn't increase value). And I wouldn't think having power lines behind your property would be a big deal, but I am told that it is.
Well first of all, I think " would I live here ?". Then I look for anything that someone MIGHT find undesirable: noisy/large pet next door, messy neighbors, heavy drive by traffic...etc. What are other rentals doing in the area? Is there a lot of vacancy? My thinking is that pretty much any property is rentable ....at the right price.
Well first of all, I think " would I live here ?". Then I look for anything that someone MIGHT find undesirable: noisy/large pet next door, messy neighbors, heavy drive by traffic...etc. What are other rentals doing in the area? Is there a lot of vacancy? My thinking is that pretty much any property is rentable ....at the right price.
@Account Closed I am not sure if you are married or not but I always ask myself "would my wife complain about this?" If the answer is yes.....pass..... Fact of the matter homes should appeal to the wife... Most of the time the final yes or no will be made by the wife.
But numerous items you listed are a negative ..... Double yellow lines out front, across from a school, power lines, shopping center, apartments behind, back yard is backing to interstate, etc etc is a pass for a flip property unless you can get it real cheap and sell it well below value for a profit.....but in general it will take a little longer to sell. Just depends on your market kind of a general question. Hope that helps.
Whatever you, as an investor, want to buy should be your first priority. Look for the type of property that fits your criteria. There is no reason to look for things you do not want. Your time is too precious to think otherwise.
When you find a property that fits your buying criteria, then you can make decisions about repairs, safety issues and cosmetic changes that will improve the appearance. Think in terms of attracting the right tenant for your property and you will be less inclined to make a mistake.
I appreciate the feedback from all of you. It is easy to get into the mindset of categorizing these "undesirable" attributes as things to completely avoid as opposed to realizing that these are subjective and should be factored accordingly (price, extended holding time, etc.).
We got into the habit of using the google map satellite feature as our first potential view. It's amazing how many huge power lines or transformer stations, quarries, commercial buildings, railroad tracks, animal farms, etc., are out there lurking next to what initially looks like a great deal for an investment. It helped us narrow things down before ever leaving the house, and some weren't immediately visible during a drive out to the property so we might not have noticed them without using the map search. A recent hazard was underground springs, something we had not been exposed to before, so always a good idea to talk to locals, find out what their problems are if you don't already know the area well.