Due to COVID-19, record-low interest rates and loan assistance programs make now a great time to consider investing in real estate. The thought of looking at multiple potential properties and weighing their pros and cons can be daunting, but knowing what to look for in these properties, and their potential tenants, will not only help you decide on the right property but also if real estate investment is right for you.
Location, Location, Location
You’ve heard that saying before. You wouldn’t want to live in a house that you don’t find to be in a convenient location, so potential tenants most likely won’t want to live there either. Proximity to amenities, commercial spaces, public transportation, parks, and schools will likely be important factors for people looking to move.
Existing Property or New Construction
As you consider whether to buy new construction or pre-owned homes, here are some factors to consider from Zillow. Both come with their benefits and drawbacks. An existing property is more established in its area, with faster access and improvements, such as landscaping. A new construction, on the other hand, will likely be more costly in the beginning. Risks might also include delayed completion, additional unknowns and costs. However, new constructions often offer the ability to customize as well as modern amenities and features that tenants will likely be willing to pay more for. An existing, usually older, property may present hidden issues that may need repairing that you might not run into with new construction. It’s all about what you’re comfortable with, and which of the two will give you a higher return on your investment.
Target Tenant
A tenant who pays rent on time is the target tenant, right? While the answer to this question is yes, there’s a lot more to consider if you want to have a successful investment property. Finding tenants with a good rental background, who is honest, and mature is paramount. Do you want tenants that will clean up after themselves or tenants that may cause damage that you’re stuck dealing with after they leave? Take some time to review your tenant’s information to ensure you have a problem and stress-free residential investment.
Property Condition
The condition of the property you may potentially be investing in is key to whether or not you’ll have a successful investment. Homes that are typically surrounded by nice infrastructure, popular neighborhoods, have good layouts and with functionality, as well as outdoor spaces and updates are what renters are looking for. Unless you’re looking for a property to upgrade and improve prior to renting out, consider going for attractive and updated features that will bring your desired return.
When deciding if property investment is right for you, these are factors that you want to consider. All are equally important to setting you and your potential investment up for success. If you’re unfamiliar with property investment, one of the best things you can do for yourself is talk to a broker!
Blog By: Boris Lehtman
847-644-7902 | [email protected]
Specializing in new construction and development projects means Boris Lehtman knows the best properties in Chicago. His attention to detail, knowledge of construction quality, and dedication to perfection coupled with his drive to obtain the best value for his clients makes Boris the ideal broker to work with.
Having been both a home buyer and seller himself, and being on both sides of the transaction process, Boris understands the significance of each and every deal, big and small. The home buying/selling process can seem long and tedious, but he provides clients with insight into what milestones need to be achieved and when, and provides real expectations and guidance on what lies ahead.