If you are you’re interested in investing in real estate, one of the best places to start is just by combing through listings online and in your local real estate publications. With so many listings out there on the market, it can be difficult to know where to even start.
Below are a few tips to help you spot a great real estate listing when you’re browsing through your options.
- Look for properties that are slightly undervalued for the neighborhood
When you are looking at real estate properties, one of the most effective ways to sort is by neighborhood. Look for a neighborhood that you think has a lot of potential – a good investment neighborhood is growing and developing, but still has fairly affordable housing options.
Learn the average prices for the neighborhoods you are interested in, and then keep an eye out for listings that are slightly undervalued. This price point means you’re more likely to get a good return on investment.
- Decide what types of properties you want
With so many different types of properties on the market, you have to start narrowing things down before you can find the perfect property.
For example, you’ll need to decide if you want a single-unit or multi-unit property. Also, create a shortlist of key traits you want in a property, as it will make it easier to eliminate listings that just aren’t what you’re interested in.
- Look for properties that need minimal repairs
Whenever you decide to purchase an investment property there are chances you will have to do some repairs and renovations. However, if a property needs extensive and costly repairs, the investment probably isn’t going to be worth all of that extra effort.
Extensive repairs are not only expensive on their own, but they also mean that it’s going to take some time before you can list your property for rent.
If you want more education on real estate investing, consider joining the Cash Flow Academy online training course. During this course, we will dive into how to find great properties and turn them into a source of passive income.