You have motivated buyers. Now you need great property. The definition of great investment property varies from buyer to buyer and from community to community. In this economy, there are some guidelines that are great across the board.
o Apartment units and other types of multi-unit properties are popular. These units bring in multiple revenue sources because they have several tenants.
o Many investors love to take a dilapidated property and fix it up the way they like. A property that is totally run over with debris and garbage may not appeal to many buyers but it can appeal to buyers in this market.
o What is the neighborhood like? The answers to what will make a good neighborhood will vary but you always want to find a property with an active neighborhood. Close proximity to stores and jobs is also important. This shows that whoever owns the property has a good chance of renting it out in the future.
o Older properties are often overlooked by many investors. You can snatch these up for a very low price. Whether you decide to renovate or sell these properties, you will be able to turn a nice profit.
Finally, look for a motivated seller. Here are some clues that the owner may be ready to sell:
o The property is in foreclosure.
o The bank has owned the property for several months. Banks hate to carry these properties on their books for long periods of time.
o The property has been listed by a real estate agent for several months.
o The advertisements for the property indicate it will be sold “as is” or it may be called a “fixer upper special.”
One word of caution-what is a good investment property to you may not be to all buyers. Some do want newer, single-family homes or land. If you are matching investors with property, know what they want. Ask questions so that you will have the answer when that perfect property is available.