OfflineI just read this article about neighborhood threats that will decrease your home value, and thought about sharing it on this forum because many investors here may not think of this issue when purchasing an investment property, since they will not be living in it; but keep in mind, that if you don't research the neighborhood where you're investing, you may end up owning a property that no one will want to rent, or worse, that you may not be able to sell...
http://realestate.msn.com/7-neighborhood-threats-to-your-homes-value
Wishing everyone success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
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Great post! This is why you can not rely on a website for your final ARV number. They do not show all the info needed to determine what the property will sell for and how long to expect it to be on the market. Comps can vary street to street.
To add to the seven problems listed I see noisy, busy streets deduct almost 10% from ARV. A liquor store nearby can be as much as 3% deduction. Commercial development nearby can boost the area values but have a negative effect on the property you are looking at. On and On!!
Like you said, alot of new investors take the easy way out, don't do any real due diligence, pay way to much and can't sell their property to people that know what they are doing! Or they make stupid low ball offers that will never be accepted!
Thanks again Valerie!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
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