Searching for quality investment property is cumbersome. Oh, there are lots and lots of properties for sale in the Kansas City area right now. And some seemingly great bargains…until you examine the neighborhood, the repairs necessary, the
financing appropriate financing, etc.
And you really have to keep appraisals in mind. It’s been quite a while since I’ve had a problem with a primary home appraisal. But refinancing an investment property seems to be a rather interesting way to spend your time for the real estate investor. It’s like a hobby that may or may not pay for itself. 🙂
Right now, more than ever, you have to keep your criteria in mind when deciding on a quality investment property. My criteria?
- Vacancy rates
- Rent to price ratios
- Tenant pool
Just to name a few. The property I seek for my clients must have money to be made on the buy side ( a little or a lot depends on your patience ) and pay for itself during the holding period of the next 5-10 years. To pay for itself the rental property needs to be clean and attractive to an available tenant pool that is in need of housing (less than 10% vacancies) and can afford the rental rates being sought.
Sounds simplistic. But the more you can define YOUR criteria the harder it will be to find YOUR investment property. But when you find it, it’s an easy decision.