Skip to main content

5 Signs of A Great Deal When Buying Southwest Michigan Real Estate

As an investor, you are always looking for a great deal, but how can you tell? Here are 5 signs of a great deal when buying Southwest Michigan real estate.

No Zoning Issues or Liens

It is important that you research a potential investment for any zoning issues or liens on the property. If the property you are interested in doesn’t have the right zoning, you may not be able to use the property for your original plans. It is also very important that your intended property does not have any liens on it, for if you did purchase it, they would then become your responsibility to pay, and that would cut into your return on investment.

No Expensive Repairs

If a property you are interested in does not have any serious structural issues, then it is probably worth submitting an offer, even more so if the price is right! Even if the property has a slightly outdated kitchen, you don’t have to replace it if it’s still functional or not destroyed. You don’t have to follow the TV hype of remodeling every kitchen and bathroom of every investment property you purchase. It is ok to remodel them as your budget allows, even if it takes years. You have to make sure the property is profitable first before investing any more money than absolutely necessary.

Priced Near Assessed Value

If a property is priced at or below the county assessed value, you can be sure it is a great deal! Market value is usually between 10-25% above the county assessed value. You need to be careful, because if a property is priced that far below market value, it may have some damage or some other reason why it is priced so low. You may be lucky and have a seller that is extremely motivated with a great property. On the other hand, you may have just found a bank-owned property and it might have some damage.

Passes 1% Rule of Thumb

There is a general rule of thumb that real estate investors use when determining if the price of a property is a good deal. They say that the property should rent for about 1% of the purchase price. For instance, if a property should rent for about $1,400 then the ideal purchase price would be about $140,000 for it to turn a profit. In order to use this rule, you will have to analyze the fair market rental potential of the property.

Curb Appeal

If the property already has fairly decent curb appeal, then that is just icing on the cake! That is hundreds or possibly thousands of dollars saved from potential renovation costs. You will also want to take a look at the overall silhouette of the home and make sure it looks square and healthy. Another important factor of curb appeal is a straight roofline. Sometimes when additions are made or the property withstood damage, the roofline may slope slightly, or might not match the overall composition of the house. Another thing to watch out for is different siding treatments on the home. This may also indicate an addition that lends itself to having structural issues.

If you are a real estate investor looking for a great deal when buying Southwest Michigan real estate, then call I Buy SW MI today at (231) 392-3262. We will handle all of the legwork to look for your ideal investment property, simply provide the features you are looking for and we will provide you with some options.

Please call us or send us a message to discuss these five signs of a great deal when buying Southwest Michigan real estate.

Labels:

Comments

Post a Comment

Popular posts from this blog

4 Common Mistakes to Avoid When Buying Land In Muskegon MI

  Astute investors in the real estate realm who aim to broaden their investment portfolios comprehend the promising returns and countless innovative applications that land can present. Frequently, these enterprising investors merge their diverse business ventures with real estate investments to not only generate wealth but also expand their enterprises by developing a tract of land. 1. Neglecting to conduct proper due diligence ranks among the most crucial errors to steer clear of when purchasing land in Muskegon MI. This entails thoroughly researching the property before presenting an offer, encompassing an assessment of zoning and land use regulations, environmental considerations, as well as the availability of utilities and access. 2. Lacking a well-defined investment strategy stands as another prevalent error—failing to establish a clear plan before acquiring land. It is vital to determine your objectives, whether they involve long-term landholding or targeted developme...
Post a Comment
Read more

Questions to Ask Yourself Before Selling Your House Fast

  Selling a house fast can be a daunting task, especially if you're not prepared for it. Before putting your house on the market, it's important to ask yourself a few questions to make sure you're ready for the process. Here are some questions to consider: Why do I want to sell my house fast? Before making any big decision, it's important to know why you're doing it. Is it because you're moving to a new city? Or do you need the money for an emergency? Understanding your motivation can help you make the right choices throughout the selling process. How much is my house worth? Knowing the value of your house can help you set the right price and negotiate with buyers. You can hire a real estate agent or use online tools to get an estimate of your house's value. What repairs or renovations does my house need? Before putting your house on the market, you should take care of any necessary repairs or renovations. This can help increase the value of your house and a...
Post a Comment
Read more

How To Sell Your House Fast in Southwest Michigan To Save Money and Time

Do you need to sell your house fast in Southwest Michigan? Doing so will help you to save time and money when all is said and done. Keep reading to learn how to sell your house in Southwest Michigan so you can move on faster and with more money in your pocket.  Many people find themselves in a situation where they need to sell their houses fast, without any delays or extra costs. People dealing with foreclosure, divorce, repairs, or an inherited property may not have the time or money to wait around while a buyer is found. Below are a few tips to help you sell your house fast in Southwest Michigan, ultimately saving you time and money when all is said and done. If our team can help you in any way or if you have questions about selling your house in Southwest Michigan, please feel free to reach out! Price The House To Sell If you want to sell your house fast in Southwest Michigan and you want to do it the traditional way, you’ll need to price the house to sell. This...
Post a Comment
Read more