Real estate properties can have very promising returns. Still, you can end up sinking a lot of money into a property without ever turning a profit. Getting a good real estate investment relies on picking the right property in the first place. Most profitable real estate properties will have these key features:
Good Neighborhoods
A key factor in any wise investment is a good neighborhood. Look for areas with a low vacancy rate, highly-rated schools, and low criminal activity. Keep in mind that the type of property you are considering will greatly affect your neighborhood. For example, a neighborhood near a university might be good for you if you are looking at an apartment with multiple small units.
Local Job Markets
Employment opportunities in the region are closely linked to the success of real estate markets. You can look at the U.S. Bureau of Labor Statistics to get employment rates for your area. Generally, a location with an expanding job market will see real estate prices go up as more workers start to look for jobs in the region. However, a local industry like phosphate mining may actually cause prices to go down if no one wants to live near it.
Amenities
One of the key ways that properties attract renters is with their amenities. With hundreds of similar homes, renters will pick the ones with the highest levels of amenities. In addition to on-site amenities like gyms and pools, also consider neighborhood amenities. Properties near parks, libraries, restaurants, and entertainment venues tend to do well as long as they are not so close that noise becomes a problem.
Future Development Plans
Ideally, investors want to purchase a property at a low price and then rent it or sell it for higher rates. To do this, it is important to be able to tell whether a property is in an area with a lot of promising growth or not. Check with municipal planning departments to see if any new developments are coming up in the area. As long as the new development is not something that would compete with the property, it is a good sign.