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 Even if the property has a slightly outdated kitchen, you don’t have to replace it if it’s still functional or not destroyed.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

How to Sell an Inherited House in Southwest Michigan, MI

How To Sell an Inherited House Made Simple Inheriting a property is a bittersweet experience. Although it might mean acquiring a house that could drastically improve your life, it also means that a loved one has passed. There’s a lot to consider if you don’t want it, like knowing if you should sell an inherited house or not. Grieving is a difficult process, and dealing with your newly acquired property might be the furthest thought from your mind. However, it’s important to manage your inherited property before it becomes not only an emotional stress factor but a financial one too. Knowing how to sell an inherited house doesn’t have to be an added stress. The Center of Wealth and Philanthropy , at Boston College, projects that the baby boomer generation will inherit upwards of $27 trillion over the next four decades. A large portion of that figure includes inherited homes. But the sudden acquisition of an inheritance can leave you with many questions. ...
Post a Comment
Read more

What are the Benefits of Selling a House for Cash?

Selling your house shouldn’t be stressful. There are options. There are benefits of selling a house for cash that most homeowners don’t consider. Owning a home allows one to build part of their financial security. As the ownership of this asset continues it builds equity. Once you decide to sell your home then this equity becomes available to you for whatever way you want to use it. The decision to sell your home brings with it several options. You can list through an agent or you can list it yourself. Then is one other option and that is selling your house for cash. Benefits of Selling a House for Cash If you have ever sold a home in the past you have the basic knowledge of the process. Most likely you went through this while using a realtor. While there are some advantages to this method there are also some negative aspects to it. Selling a house for cash means you don’t have to deal with the downside of selling a home in a conventional manner. Fewer Sel...
Post a Comment
Read more

For Sale By Owner Pros and Cons

Before listing a home on the real estate market, homeowners need to make one very important decision: who is going to actually sell the property. Deciding how to sell, either for sale by owner, with a realtor, or with a cash buyer, is a big issue. Selling a home can be a lengthy and complicated process for owners, so many choose to employ the services and expertise of a local real estate agent for assistance. Other homeowners feel confident in their ability to sell and decide to list a for sale by owner. While selling a house as the owner has enormous benefits, including selling for cash offer, it also comes with unappealing pitfalls for those inexperienced with the process. To avoid these disadvantages, homeowners must become familiar with the for sale by owner process and recognize both the pros and cons. Listing A For Sale By Owner When selling a house as the owner, it’s vital to start with pricing the property. Accurately pricing a house is easier said th...
Post a Comment
Read more