Key Investment Guidelines For Rental SFR Properties

Whether you're looking for a conduit, traditional or hard money funding solutions. Winston Rowe and Associates can meet both your individual and professional investment objectives. They have some of the most creative capitalization plans in the market that are designed meet the unique set of financial circumstances of each  transaction.

Choose the right property and you'll reap the rewards; the wrong one will end up costing you dearly. You can minimize the potential for losses if you remember these four things to look for when evaluating a commercial property.

Property Location. The most important aspect of real estate investing is the location of the property. Properties in prime locations provide investors options such as resale, or rental. Those in poorly performing areas are limited and resale or rental may be difficult. The only way to really know what the area is like is to drive through during the day, at night and on weekends. Take note of activity that may discourage future buyers or renters.

Property Condition.  The condition of the roof, foundation, windows and mechanical components are big ticket items that will greatly affect your budget.  Make sure you have hard cost numbers from your contractor before you take the deal. Don't be overly concerned by cosmetic issues that are easily fixed. Fresh paint, updated carpet, and flooring are relatively inexpensive.

Asking Price. The determining factor will be what the potential future value of the property is. The listing price is an important part of the equation. You don't want to invest more than the property is worth, especially if you need to do a large amount of rehab. Look at other comparable properties, same number of bedrooms, square footage, etc., and determine the amount you're willing to invest. Don't be surprised, sometimes your offer will be more than the listing price.

After Rehab Value.  When it comes to investing, look at the location, condition, sales price and after rehab value. When all of these things are in line, you'll be on your way to a profitable deal. The combined total of the asking price, plus rehab costs will bring you to your total expenses. Determine the percentage of profit, or dollar amount, you want to make and evaluate whether your investment will fulfill your needs. If not, you will be wise to move on to the next deal. Evaluating the after rehab value of a property will help you determine whether the deal is one you want to take, or if it's time to move on. However, this isn't necessarily the value of the home. Once completed, it's possible your investment will be worth far more.

When speed and experience are important and crucial to your SFR and multifamily investing success, a principal at Winston Rowe & Associates is always available to speak with prospective clients.

They can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com

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