How to Choose the Best Kinds of Properties for Your Portfolio

Knowing where to start with real estate is a daunting task, but with a little digging, you can easily move forward in a real estate venture that is right for you. Every property is different, and when you are getting into the initial research, you’ll also find that they all have a few things in common. And here are the things that we think you should look for and be aware of before you dive in to a new investment.

Price Point

Too cheap and too expensive, they are obviously on opposite ends of the spectrum, but one is definitely not better than another. Be wary of both and find something that comfortably fits inside of your budget. If a dreamy property is popping up with a price tag that is well below what it should actually be worth, then you need to do some investigating. Ask the hard questions, and be aware that there are probably some serious issues if the property is selling for less than it’s appraised for. The same principal applies if it is selling for a lot more than it should. Has the price been inflated unnecessarily? And just because you pay top dollar doesn’t mean that it is a superior property. Do yourself a favor and make sure to fully investigate every deal, regardless of price point.

Tenants & Their Patterns

The tenants of a property say a lot about that property. Higher income properties tend to draw a much different crowd than those that are strategically placed in a less reputable part of town, but just because it has  higher price point doesn’t mean that it has better tenants. Take a look at eviction rates and how the management is handling them. And realize that potential cash flow means nothing if your tenant performance is poor. The longevity of good tenants and proper management are key to choosing a good property.

Location, Location, Location

You hear it all the time. Location matters. And in this financial climate, more than ever, it matters. People are moving where they can find work. And if you aren’t looking for properties where there are jobs, then you probably aren’t looking in the right places. Now, more than ever, people are looking for convenient locations with excellent schools, and ample job opportunities. Your best bet is to start looking for properties near blossoming tech regions or where new hospitals or existing military bases are. These communities are steady and they require a lot of housing. As the health industries continue to erupt, we also see a rise in the need for properties that are in walk-able cities as well as bike-able ones. These qualities will only add to the allure of your property.

Here at Magnolia Capital Properties, we believe in educating our investors and making sure that you are secure and growing your passive wealth income goals. Are you ready to find a real estate investment services firm who works for you? Are you wanting to invest in real estate as a passive, accredited investor in order to do the things you love? Do you want to work with a highly motivated, professional team that has a detailed investment strategy, a repeatable business model that produces targeted, profitable results? If you have answered “yes” to any of these questions, then you have found multifamily real estate investments at its very best with Magnolia Capital Properties. Head over to our contact page and leave your information so that we can help you start investing today!

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