Investing in real estate can be a profitable venture, especially in a hot market like Philadelphia, Pa and the surrounding areas. With a growing population and a strong economy, this city has become a hotspot for local property investors and those from all over the country. However, not all properties are created equal, each one is different, whether in a good way or bad, and it’s important to know what to look for when buying an investment property of your own. In this blog, we’ll discuss the top 5 things Philadelphia, Pa investors need to look for when buying a property.
1. The Location of Your Investment Property
The location of a property is one of the most important factors to consider when investing in Philadlephia, Pa or surrounding suburban area real estate. A good location can increase the value of a property, while a bad location can decrease it drastically. When looking for a property in Philadelphia, Pa, consider its proximity to amenities such as schools, hospitals, shopping centers, and public transportation such as buses and train stations. Properties located in desirable neighborhoods with low crime rates and great schools also tend to have higher resale values.
2. The Condition of the Philadelphia, Pa Investment Property
The age and condition of a Philadelphia, Pa property can significantly affect its value. Before making an Cash offer, it’s important to inspect the property thoroughly inside and out to identify any issues that may need to be addressed. This includes checking for leaks, cracks, and other structural issues, as well as the condition of the roof, plumbing, and wiring. If the property requires significant repairs, it may not be worth the investment and the work or Rehab costs needed to upgrade the home just may be to much. TriState Properties can help you analyze the costs of a potential investment property so you don’t wind up in over your head. This step is the most crucial part of evalutating any potential investment property.
3. The Potential for Appreciation
One of the main reasons investors buy properties is for their potential to appreciate in value over time. When looking for a property in Philadelphia, Pa or any surrounding suburban area, consider the local real estate market trends and projections for near and distant future. While your investment property should be generating a good income for you currently, you’ll want to look for areas that are expected to experience growth in the near future and become better, such as new developments or infrastructure projects. Investing in a property with the potential for appreciation can result in significant returns in the long run. Which you want to be on the look out for because some areas can be on a significant downward spiral which is a big issue.
4. Rental Income Potential
If you plan to rent out your Philadelphia, Pa or surrounding area property, it’s important to consider its rental income potential. Look for properties that are in high demand and have rental rates that are in line with the local market. Consider the property’s location, size, and amenities when determining its rental value in the specific area. Additionally, consider any expenses associated with renting the property, such as property management fees and maintenance costs inside and outside of the potential property. Working with a professional buyer such as TriState Properties will ensure you have all of the data, knowledge and financial information you need for the property.
5. Financing Options for Investment Real Estate
Lastly, consider all of your financing options when buying an investment property in Philadelphia, Pa and any surrounding suburban areas. Look for lenders that offer competitive interest rates and flexible repayment terms. Consider the down payment requirements and closing costs associated with the loan. These things are vitally important. Additionally, consider the potential risks associated with the investment, such as the possibility of a market downturn which we spoke about in the Blog previously.
In conclusion, investing in real estate can be a lucrative endeavor in Philadelphia, Pa and any of it’s surrounding suburban areas, but it’s important to do your due diligence effectively before making an investment. Consider the property’s location, condition, potential for appreciation, rental income potential, upward or downward value trends in the area, and financing options when making a decision. By doing so, you can increase your chances of making a successful investment that will provide long-term returns. Which is your ultimate goal when considering an Investment. Are you ready to buy an investment property in Philadelphia, Pa or any surrounding suburban area? TriState Properties can definitely help you find exactly what you are looking for. Give us a call today and review your many investment options! 267-703-9956