Investors are always on the lookout for good deals. But how can they tell? The following are 5 signs you are getting a great deal on real estate in Savannah.
5 Signs of A Great Deal When Buying Savannah Real Estate
No Zoning Issues or Liens
Whenever you are considering a potential investment, you should check the property for zoning issues or liens. You may not be able to use the property for your original plans if the property does not have the right zoning. Additionally, it is very important to ensure that the property you intend to purchase has no liens on it, as these would then become your responsibility if you were to purchase the property, which would cut into your return on investment.
No Expensive Repairs
If you are interested in a property that does not have any major structural issues, then it is probably worth making an offer, especially if the price is right! Don’t be fooled by the TV hype of remodeling every kitchen and bathroom of every investment property you buy. When a house has an old kitchen, you don’t have to replace it if it’s functional or not damaged. The renovation can be done as your budget allows, even if it takes years. It is important to make sure the property is profitable before investing more than absolutely necessary.
Priced Near Assessed Value
At or below the county-assessed value, you are sure to get a great deal on a property! Market value is usually between 10-25% higher than the county assessed value. You need to be careful, because if a property is that far below market value, it may have some damage or another reason for being that low. If you are lucky, you will find a seller who has a great property and is extremely motivated. On the other hand, you might have just come across a property that was owned by a bank and might have been damaged.
Passes 1% Rule of Thumb
Real estate investors use a general rule of thumb to determine whether a property’s price is fair. The property should rent for about 1% of the purchase price, according to the experts. If a property rents for $1,400 a month, then the ideal purchase price for it to turn a profit is $140,000. To apply this rule, you will have to analyze the property’s fair market rental potential.
In some cases, the property may already have decent curb appeal, so this is just icing on the cake. You could save hundreds or even thousands of dollars by not having to renovate. It is also a good idea to check out the overall silhouette of the house and make sure that it looks square and well-kept. A straight roofline is another important factor of curb appeal. Sometimes a house’s roofline may slope slightly when additions are made or when it has sustained damage. The siding treatment on a home should also be kept in mind. This may indicate an addition that could cause structural problems.
Call 32Homes LLC at (912) 421-9907 if you’re a real estate investor looking for a great deal when buying property in Savannah. Simply tell us what you are looking for and we will provide you with some options for your ideal investment property.