Buying Philadelphia Real Estate
As an investor, you always look for a great deal, but how can you tell? Here in this blog post are five signs of a great deal when buying Philadelphia real estate. We’re Buying Property 215, experienced and knowledgeable real estate investors in Pennsylvania!
5 Signs of A Great Deal When Buying Philadelphia Real Estate
No Zoning Issues or Liens
It would help if you researched a potential investment for any zoning issues or liens on the property. If the property you are interested in doesn’t have the proper zoning, you may not be able to use the property for your original plans. It is also imperative that your intended property does not have any liens on it. It would become your responsibility to pay if you did purchase it, cutting your return on investment.
No Expensive Repairs
If a property you are interested in has no serious structural issues, 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 Even if the property has a slightly outdated kitchen, you don’t have to replace it if it’s still functional or not destroyed.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 property you purchase for investment purposes. It is ok to remodel them as your budget allows, even if it takes years. You must ensure the property is profitable before investing more money than 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 10-25% above the county’s estimated value. You need to be careful because if a property is priced that far below market value, it may have some damage or another reason why it is priced so low. You may be lucky and have an extremely motivated seller with a great property. On the other hand, you may have just found a bank-owned property, which 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 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 to turn a profit. To use this rule, you will have to analyze the fair market potential of a rental property.
If the property already has decent curb appeal, 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 look at the home’s overall silhouette and ensure it looks square and healthy. Another essential 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 signs of a great deal when buying Philadelphia real estate, call Buying Property 215 today at [215-359-6090]. We will handle all the legwork to look for your ideal investment property, provide the features you are looking for and give you some options.