I am looking for an investment property like a Town Home or a Single family home which I would like to get some cash flow for a period of 5 to 10 years. After that, I plan to sell it. I would like to get some tips on what are the 3 or 4 things you guys look for when you visit a property? What are the 2 red flags which you want to see so that you can reject a rental property like a single family home or townhome?
@Buyan Thyagarajan I want it to be in a good enough neighborhood that I can attract decent tenants. I also look for value add opportunities whether it be through cosmetics or finding a way to make a property more desirable for little cost that other people overlook. In single families I also want it to have enough space, good size rooms, and a decent layout. Weird properties attract weird people. Red flags are foundation issues or less than ideal neighbors. Go at different times of the day/week and make sure there are no rowdy neighbors or dogs that could affect you retaining/getting tenants. I also don't want all of the mechanicals to be old because on single family homes capex can destroy years of cash flow since the margins are tighter. If you plan to sell in 5 to 10 years make sure it is a stable area or well on its way to an upswing. You don't want to buy in an area going downhill on account of resale when you want to sell.