Research every investor, novice and expert alike, should do when considering an investment property with hopes of renting out and/or flipping.
HOW YOUR TENACITY CAN BE PUT TO WORK:
- Learn the area. Start by getting in the car and taking a drive. In addition to driving around, you’ve got to explore by foot to truly get a feel for an area and seek an understanding of factors important to your potential renter or buyer.
- Obtain local statistics. Look at how the town or city compares with other localities in the area to get a better understanding of the relative attractiveness (or lack thereof) of your target town or city.
HOW YOUR REAL ESTATE AGENT CAN ASSIST:
- Run a sales comparison. Ask your real estate broker to produce a list of specific, comparable properties in the area. Knowing how much an investment property is worth will help you gauge its value and determine potential growth.
- Find out market rents. If you’re going to rent out a residential property, know its true rent potential before you buy. Your Realtor can help with this, and provide comparable sales data.
- Add up all costs of ownership. In addition to the property taxes, ask your Realtor if he/she can obtain data on the current expenses of the property, such as utilities and insurance.
- Evaluate multiple properties. It’s best to look at multiple properties before making an offer. Ask your Realtor to show you several within your price range, and get a sense of your target property’s value.
HOW AN EXPERIENCED LAWYER CAN HELP:
- Check into any potential liens. Engage your lawyer and find out the current mortgage and last sale price of your target property, and see if there are any liens on the property. This can help your negotiation boundaries for buying the property, and the price the sellers will likely be willing to accept.
- Determine property potential. Your lawyer can help you determine and understand how the property is zoned. If you have visions of developing the property, you need to know how the town classifies it and the limitations that come with that.
- Examine relevant permit data. Your lawyer can also provide you with permit information that can help you determine the seller’s honesty when those matters come up during the negotiation.
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For tips and advice, look for The Property Sisters segment each month in PPL.
They are always here to answer your questions:
Bridget Gricus (708) 814-6253, bridgetgricus@gmail.com
Eileen Kerlin Walsh (708) 448-5169, Eileen@KerlinWalshLaw.com
