3 Resources to Use When Looking for an Investment Property


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Finding the perfect investment property it can be scary for anyone, especially first-time investors. There are many metrics and factors to consider, and this real estate market is not always easy to navigate.

There are several things you are most likely to look for in an investment property:

1. A good neighborhood

Location is one of the most important aspects of a home to potential buyers. It also determines what kind of rent you will attract. For example, are you near a university? Chances are you'll see students flood your applicant pool. If that's not something you're interested in, choose a property in a suburb to bring in young families, or in an area bustling with young professionals.

2. Low property tax

To get the most out of it, you want to lower every expense and fee with your investment property. One of these expenses is property tax.

Property taxes can sometimes mean a valuable home that will attract quality, long-term tenants. However, there are also undesirable locations that require high property taxes. These are the areas you want to stay away from maximize your returns.

3. The labor market

It's a good idea to look at the employment rates in the areas you're considering investing in. The more job applicants you have, the less turnover and missed payments you will experience.

If you notice that a large corporation is coming to town or a new factory is opening near you, it may be a good time to invest in that area. Workers eager for housing will flood the neighborhood.

Connected: Want to invest in a rental property? Do these 5 things first.

These factors are just some of the things you should consider when choosing an investment property. It can seem impossible to find something that fits within the categories you've defined, especially when there seem to be unlimited resources online that claim to have what you're looking for.

Which websites are worth your time? How can they help you find the best investment property in your budget that suits your needs?

Here are some solutions that will help in your property search.

1. National Association of Realtors (NAR)

The National Association of Realtors (NAR) is an established group that has long been a prominent player in real estate industry. It represents over 1.4 million real estate professionals and protects the interests of its members. NAR also advocates for fair home ownership practices and property rights and remains one of the best real estate websites on the web.

You will find an abundance of educational resources on the NAR website, making it especially useful for those new to the field. You can also find valuable real estate data and other tools that can help both buyers and sellers.

One of the most useful aspects of the NAR website is its search function. Users can find realtors in their area, whether you need a professional to help with your search or just need someone knowledgeable about the area to chat with.

The most important part of buying your investment property is preparation. Be sure to talk to as many experts as you can to ensure that your next investment is likely to pan out.

Connected: How to identify strong real estate markets for your next investment

2. Zillow

Zillow is one of the most popular real estate websites there, and is used by many real estate agents and house hunters.

The reason for Zillow's popularity is in part due to its detailed information on a variety of properties. You can filter through homes based on specific criteria such as location, price and property type.

Zillow also offers its users the opportunity to see the home in a whole new light with high-quality photos and virtual tours. It also gives you in-depth information about the appraised value of the property, sales data and other information you may want, such as what are the amenities of the school district or the surrounding neighborhood.

Investors will benefit from Zillow's interactive map, which allows them to see the location of each property and the surrounding area. As we mentioned earlier, location should be a big determinant of the viability of an investment property. Be sure to use the tools Zillow offers to become fully informed about the surrounding area and what types TENANTS you are likely to experience.

It can also be helpful for investors to use Zillow's mortgage calculations and affordability ratings, since this is an investment property after all. Use these tools to help you estimate what you'll earn each month, but keep in mind that these are estimates. You will still need to do your own calculations or consult a trusted financial expert for more accurate information.

3. MLS.com

What is MLS?

The Multiple Listing Service, or MLS, is a network of private databases of property listings. This database is funded and maintained by real estate professionals who also use the data to help their businesses.

The MLS.com listing website is an offline search tool that will allow you to find listings for sale from realtors in your area who are all members of your local MLS. It is important to note that MLS.com is not affiliated with the larger MLS system and is independently owned and operated.

However, MLS.com remains a useful resource for investors looking for their next investment property. MLS listings tend to attract top dollar as they receive additional exposure and provide unparalleled access to those using the system.

MLS.com also provides information on seized propertieswhich can offer more bang for your buck for investors or those looking for quality house hunting websites.

Connected: 3 things to consider before buying an investment property

Every investment venture involves a fair amount of risk, and real estate is no different. Although using the websites mentioned above can help you mitigate some risks through preparation, don't expect instant success.

Use these tools to find potential properties, then continue your property research with a professional or trusted friend inside investment in real estate space. While filtering through these options will start you off on the right foot, you'll need to take the process from there with a grain of salt.



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