As an investor, you are always looking for a great deal, but how can you tell? Here are 5 signs of a great real estate deal when buying Pittsburgh real estate.
No Zoning Issues or Liens
It is important that you research a potential investment for any zoning issues or liens on the property. If the property you are interested in does not have the right zoning, you may not be able to use the property for your original plans. It is also very important that your intended property has a clear title and is not subject to any liens or encumbrances that could become your responsibility, if not handled correctly, and cut into your potential to make a return on your investment.
No Expensive Repairs
If a property you are interested does not have any serious structural issues, then it is probably worth submitting an offer if the price is right! Even if the property has a slightly outdated kitchen, you might not have to replace it entirely if it is somewhat functional and not completely destroyed. You do not have to follow the HGTV hype of remodeling every kitchen and every bathroom of every investment property you purchase. It is entirely fine to remodel only as your budget permits, even if it takes years. You have to make sure the property is profitable, first, before investing any more money than absolutely necessary.
Priced Near Assessed Value
If a property is priced at or below the county assessed value, it is most likely considered a deal assuming there is not a significant amount of rehab and repairs to make! Market value is usually between 10-25% above the county assessed value. Investors should be careful- if a property is priced that far below market value, it may have some damage or some other reason why it is priced so low. You may be lucky and have a seller that is extremely motivated with a great property. On the other hand, you may have just found a bank-owned property and it might have some damage that will need to be remedied before you can exit your investment.
Passes 1% Rule of Thumb
There is a general rule of thumb that real estate investors use when determining if the price of a property is a good deal and that is the property should rent for about 1% of the purchase price. For instance, if you purchase a property for $200,000, it should rent for about $2,000. In order for this rule to be effective, you will need to analyze the fair market rental potential of the property and the location in which it resides.
If your investment property includes a fairly decent curb appeal already, you can possibly save save hundreds or possibly thousands of dollars on renovation expenses. It is important to inspect the overall silhouette of the property to insure it is square and structurally sound. A straight and square roofline is a major factor in curb appeal, so make sure to eyeball your subject property with a careful eye and remember the human eye prefers geometric shapes & symmetry. If prior improvements or additions were made to the property or the home withstood structural damage, the roofline may slope slightly and might not match the overall home composition. Keep an eye out for a multitude of siding treatments which could indicate a non-permitted additions. Non-permitted additions can lend themselves not only to structural issues, but also trouble with the city permitting and building inspectors. Non-permitted structures can also become a major issue when installing exterior updates like siding, fascia or shingles. Before you buy, make sure you inspect the curb appeal and take a deep dive on the structure itself to make sure you end up with profit and not loss.
If you are a real estate investor looking for a great deal when buying Pittsburgh real estate, then call Pittsburgh Cash Home Buyers LLC today at (412) 900-8261.
We will handle all of the legwork to look for your ideal investment property, simply provide the features you are looking for and we will provide you with some options.