Wondering what numbers to look for?
How should I evaluate a property for my primary residence?
Recently, this question came up from a friend of mine that’s looking to move out of state.
The property was valued completely different from where he currently resided, so it appeared every house was a great deal.
It’s very common and I’ve seen this first hand in my own neighborhood.
People move from out of state and all of a sudden they’re able to afford more house for the same money.
Enough of that though.
Let’s look at what you should look for .
Potential homeowners would benefit by looking at houses similar to a real estate investors.
Here’s 5 strategies to help you looking for a property out of your market.
The Numbers Are All That Matter
It’s all a numbers game.
You don’t want to be in a situation where you buy a house then if for whatever reason you need to move, you’re stuck.
That’s not a fun position to be in.
So, I’d suggest to plan for the worst case scenario.
For example, what would happen if you lost your job?
Or had to move back?
Look at everything on the market and what the prices are.
But more importantly, look at what’s previously sold.
Take note on the average time length it’s taken to sell along with the price per square foot.
Then compare features.
You can pull these numbers in apps like Zillow or ask your real estate agent to pull competitive properties.
Cosmetics Are Simple Fixes
Instead of stressing over the cosmetics of the house, pay more attention to big ticket fixes like the roof, water damage, hvac, and plumbing.
Paint and carpet are relatively inexpensive.
Typically, you’ll do better financially looking for properties that are structurally sound that just need cosmetic work.
Forget the house flipping shows that do complete gut jobs and instead look at the numbers and simple repairs that you can make easily.
Inspect the houses at multiple times.
If you visit the house during work hours, during a work day, chances are you’ll find a quiet neighborhood.
This doesn’t always represent what’s actually going on.
Plan an additional drive by visit after hours.
This way you see what it looks like when everyone is off from work.
Take note of how many cars are parked on the street, noise levels, and traffic on the streets.
This will be a more accurate representation of what you’ll be able to expect from the neighborhood.
Drive by while it’s raining
The same rules apply as above.
Do a drive by when it’s coming a flood.
Everything may look great while the sun’s shining, but you’ll be able to identify any potential drainage problems with a good rain.
Chances are good that you’re Realtor doesn’t know a good deal.
Real Estate agents are trying to make a sale.
That’s their livelihood. Most real estate agents, I know are focused on getting more leads.
Therefore, you’ll need to do your own due diligence to assure that you’re making the right decision and getting in with equity.
Often, when buying a home to live in, we throw out a lot of the rules that investors take as a given.
As an investor, our goals are a tab bit different.
First, we aim to build a list of buyers.
Then find out what they’re looking for.
Go out and find what they’re looking for so we can sell it to them.
Walking away with the difference.
If you take this approach when buying your next primary residence, you’ll be able to get into the deal with instant equity.