We’re going to talk about what are some of the things that you should look for when you are looking to buy an investment property.
Know the area
So the first thing I would say is I would want to know the area, and is there any appreciation going on in the area, though you can do that by looking at historical data. You may want to take a look at the median income for the area, and what is the median rent ranges for that area, and see if they match up. So you can tell by if there’s any big companies there. That can be good and bad because if that company shuts down or moves, all of the properties in that area will plummet in value and in rent amounts. So I typically don’t like to go where there’s only one company that the area is dependent upon.
Is the home in a flood zone?
Here in Houston, I would obviously look to see if it’s flooded. Now something in Houston, we just had that huge flood and Hurricane Harvey. I would not be as nervous if the house had flooded once because of the hurricane. But if it was in a flood zone or had flooded several times then it’s a different indication. It’s not that it’s bad, but I think the price should reflect that.
Quality of schools and crime rates for the area
I would look at the school districts, and I would look at the crime statistics. Normally good school districts all will align with low-crime areas and will also have good appreciation, so a good benchmark is if you just start wanting a good school district that will precipitate these other things and they will all line up.
So I would suggest that you know, number one, have a look at school districts, crime, appreciation, and I would look at what the median income is in that area, median rent range and what is supplying that area with jobs. So those are just a couple things you could look at, see what is a good indication, hopefully that helps.
Steve Rozenberg with Empire Property Management