What are things to be aware of when looking at a property?

4 Replies

Hey everyone,

When you go out to the properties that you are potentially going to make an offer on, what do you look for when you are doing a walk-through. Is there a checklist you believe that will help get a better help on what the property needs and can be improved? How do you manage to catch all the small things ? 

Thanks

Permit and legality

Condition

Flow 

Cost of upgrade to move in

Piti vs rental income

Or cash flow 

Crime 

Cap rate 

Etc

Check foundation, plumbing, roof, AC, . Understand the comps and what properties have sold per square foot in the area. Find out what you can rent it for compared to what your mortgage will be based on the financing terms. Understand the major employers and migration patterns in the area. Happy to help any way I can. Best of luck!

Assign a number in the order of importance.  Add up total points. There is no such thing as perfect rental.  You pick the best over all. -highest points total 

Read the book on estimating rehab costs. Take school system into consideration--what are you buying the property for? As a buy and hold rental and expecting to house a family in it? Or to sell to someone with/without kids? Who is the end user of this property and what will they be looking for? Are major systems in place or in need of upgrade? That can get expensive, way beyond just a cosmetic fix up. You will never catch all the small things, every property will surprise you at some point, that is the fun/challenging creative part!

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