10 Things to Look for When Buying Investment Real Estate

Once you make the decision to buy real estate investment property, there are a number of factors to consider and at least 10 things you want to look for. In this article, we’ll examine what those ten things for real estate investment property are along with a brief explanation.

1) General location – Location, location, location is the mantra in real estate. Unless the investment property is located in an area that will sustain or boast rents, and in turn be able to be sold for a profit, forget it.

2) Site improvements – Does the property require repairs that might eat away at your cash flow, or are there repairs that can be made that would substantially increase your cash flow and return?

3) The lease form used – In the case of a commercial building are you locked in to a favorable or very unfavorable lease? In other words, are you buying a favorable or unfavorable income, and for how long?

4) The income produced – How much income does the income property generate and is it realistic, and can it be sustained? Is there room to increase the income?

5)  Type of expenses – What does it take to keep the property operational? Is there anything out of the ordinary, and is there a chance that some expenses can be reduced or eliminated?

7) Management requirements – Will the rental property require a professional management company, perhaps a resident manager, or is it something you can handle.

8) Financing – Can you leverage the property? What about the rates and terms will you and/or the investment property qualify for the best loan possible? What are the loan payments?

9) Depreciation benefits available – How much of your income can you defer by depreciating the property?

10) Unique features – Is there anything about this particular investment that sets it apart from other real estate investment opportunities? Perhaps its location, construction, or maybe it offers great upside potential.

Editors Note: Be sure to check out the newly updated version for ProAPOD 10.0 recently released before you create your next real estate analysis. It now includes many more picture options and other features that you will find incredible.

James Kobzeff

James Kobzeff has over thirty years experience as a realtor and investment real estate specialist. He is the developer of ProAPOD real estate investment software and freely shares his real estate investing articles.