The 3-Step Process for Evaluating a Prospective Investment Property

by Mark Ainley

Today’s real estate investing climate tends to make accurate and appropriate information critical for success. If you do not know your local housing market, you could be in trouble. An excellent strategy for developing expertise in your local market is by trailing a seasoned mentor who knows what he or she is doing. In addition to teaching you tips on how to analyze current market conditions, they will also help you understand what to look for in your local housing market.

Compared with other forms of investments, real estate investing incorporates a relatively favorable risk/reward profile, but with low liquidity (easy entry and exit). Let’s consider some of the most important factors for investing in real estate.

The 3-Step Process for Evaluating a Prospective Investment Property

Evaluate the Area

What to look for? You’ll want to seek a mid-to-long haul view about how the area is going to develop over the investment period. Today’s quiet open area at the back of a private building may be created into an uproarious manufacturing facility in the future, making the private valuations less beneficial. It is fitting to carefully check the ownership, type and expected utilization of neighboring zones, establishments and free land in the region.

multifamily-markets

Evaluate the Property

Why is it important? To find real estate funding before purchasing, you need to properly evaluate your property. You can carry out a survey of the market with the help of your mentor.

What to look for? You need to make small reports to evaluate your property in a better way.

  • Sales Comparison Report: Recent comparable report of homes that have been sold or active in the market. These homes should have similar characteristics. For example, the same number of rooms or bathrooms or the same kind of kitchen.
  • Costs Report: What would be the expenses that the investment property would entail, including taxes, possible repair costs, and depreciation in the market? Whether you are buying a new property or rehabbing an old one, you need to calculate all these costs.
  • Income Report: Based on expected cash flows (monthly rent), you can create an income report that will show what kind of money and profits you’ll be making in the end.

real-estate-market-study

Evaluate the Profits

Before buying an investment property, you need to look for what kind of profits you’ll be making. Some of the things to look forward are:

  • Expected cash flow from rental income; inflation favors landlords for rental income
  • Expected increase in net asset value due to long-term price rise
  • Benefits of depreciation (and available tax benefits)
  • Cost-benefit analysis of renovation for sale at a better price gain
  • Cost-benefit analysis of mortgage loans versus value

Investing in real estate is a big decision. That’s why you need to ensure that you’ve taken all the possible steps to evaluate the pros and cons of the area and property you are investing in and figure out the profits.

How do you evaluate a deal?

Please share with us in the comments section below.

Interested in Finding out More? Reach out below

Shawn Ireland

Phone: 913-225-6231

Email: Ireland_Investments@yahoo.com

Address: 1415 Main St. #823, Grandview, MO 64030


Website: www.irelandinvestmentsllc.com/

Facebook: @IrelandInvestmentsLLC/

Instagram: @irelandinvestmentsllc

Twitter: @IrelandLlc


Ireland Investments llc

This information is intended only for the use of the intended recipient(s) and it may be privileged and confidential. Please note that any views or opinions presented in this post are solely those of the author and do not necessarily represent those of the company. This is reposted information and is not original thought of Ireland Investments or anyone associated with the business.

Popular areas we service;


Kansas city Missouri, Overland Park Kansas, Kansas city Kansas, Olathe Kansas, Independence Missouri, Shawnee Kansas, Blue Springs Missouri, Lenexa Kansas, Leavenworth, Kansas, Leawood Kansas, Liberty Missouri, Raytown Missouri, Gladstone Missouri, Grandview Missouri, Belton Missouri, Prairie Village Kansas, Gardner Kansas, Raymore Missouri, Grain Valley Missouri, Ottawa, Kansas, Lansing Kansas, Excelsior Springs Missouri, Merriam Kansas, Harrisonville Missouri, Cameron Missouri, Mission Kansas, Kearney Missouri, Smithville Missouri, Pleasant Hill Missouri, Oak Grove Missouri, Bonner Springs Kansas, Roeland Park Kansas, Parkville Missouri, De Soto Kansas, Richmond Missouri, Greenwood Missouri, Paola Kansas, Basehor Kansas, Tonganoxie Kansas, Odessa Missouri, Peculiar Missouri, Platte City, Missouri, Higginsville Missouri, Lexington Missouri, Edwardsville Kansas, North Kansas City Missouri, Osawatomie Kansas, Louisburg Kansas, Fairway Kansas, Mission Hills Kansas, Sugar Creek Missouri, Riverside Missouri, Buckner Missouri, Pleasant Valley Missouri, Lawson Missouri, Plattsburg Missouri, Lake Lotawana Missouri, Weatherby Lake Missouri, Wellsville Kansas, Edgerton Kansas, Westwood Kansas, Garden City Missouri, Gower Missouri, Claycomo Missouri, Lone Jack Missouri, Drexel Missouri, Lake Tapawingo Missouri, Glenaire Missouri, Dearborn Missouri, Avondale Missouri, Osborn Missouri, Sibley Missouri, Oaks Missouri, Unity Village Missouri, Levasy Missouri, Randolf Missouri, River Bend Missouri, Jackson County Missouri, Johnson County Kansas, Clay County Missouri, Wyandotte County Kansas, Cass County Missouri, Platte County Missouri, Leavenworth County Kansas, Miami county Kansas, Lafayette County Missouri, Ray County Missouri, Clinton County Missouri, Bates County Missouri, Linn County Kansas, Caldwell County Missouri, Crossroads Real estate, 18th and vine Real estate, Hospital Hill real estate, library district real estate, longfellow real estate, dutch hill real estate, quality hill real estate, river market real estate union hill real estate, Greater downtown KCMO real estate, East Side KCMO real estate, Midtown KCMO real estate, Westport Real estate, Hyde Park real estate, Northeast KCMO real estate, Northland real estate, Plaza Real estate, South Kansas City Real estate, Fairway Kansas real estate, Kansas city Kansas real estate, lake quivira Kansas real estate, Lenexa Kansas real estate, Mission hills Kansas real estate, overland park Kansas real estate, prairie village Kansas real estate, Shawnee Kansas real estate, weatherby lake Missouri real estate, westwood Kansas real estate

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

WordPress.com.

Up ↑

%d bloggers like this: