5 Signs of A Great Deal When Buying Real Estate

Identifying a great real estate deal in can be challenging, but knowing what to look for can make all the difference. Here are five essential signs of a great investment property to help guide your purchase decisions. These indicators can save you money, reduce risks, and maximize your return on investment. Contact us to discover top investment opportunities in real estate.

1. No Zoning Issues or Liens

A prime sign of a good investment is a property free from zoning issues and liens. Before moving forward, research local zoning regulations to ensure the property aligns with your intended use. Zoning complications could limit the property’s potential or require costly reclassification. Equally important, make sure there are no outstanding liens, as these financial obligations would become your responsibility upon purchase, reducing your overall profit.

2. Minimal Repair Requirements

Properties that don’t require expensive structural repairs are ideal for investment. While cosmetic updates, like an outdated kitchen, can be done gradually, costly repairs can eat into your profits. Don’t be swayed by renovation trends seen on TV. Focus on properties with solid structures and only tackle additional upgrades as your budget allows. A property that needs fewer repairs right off the bat can start generating income sooner, making it a strong investment choice.

3. Priced Near Assessed Value

A property priced close to or below its assessed value is usually a promising investment. In , market value tends to be 10-25% above the county’s assessed value, so a price near this range may indicate a motivated seller or even a bank-owned property. Be cautious, though; if the property is well below market value, check for potential issues that may account for the lower price. With the right conditions, this could be an excellent opportunity for a profitable investment.

4. Passes the 1% Rule of Thumb

Many real estate investors rely on the 1% rule to determine whether a property is a good deal. According to this guideline, the monthly rent should be approximately 1% of the purchase price to ensure profitability. For instance, if a property is expected to rent for $1,500 per month, an ideal purchase price would be around $150,000. Analyzing the rental market and ensuring the property meets this criterion can help you confidently make a profitable investment.

5. Strong Curb Appeal

Curb appeal is an often-overlooked indicator of a solid investment. Properties with decent curb appeal don’t require costly landscaping or exterior renovations, saving you both time and money. Pay attention to the home’s silhouette, ensuring it looks square and sturdy, and check that the roofline is straight, as irregularities could indicate structural issues. Also, consistent siding across the property is ideal, as mismatched siding can suggest previous damage or hasty repairs.

If you’re a real estate investor searching for an ideal deal in , reach out to Oak Summit Group today at (817) 381-2181. We handle the heavy lifting, so simply let us know what you’re looking for, and we’ll present you with the best investment options in the area.