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22 Things I Look For In An Investment Property

When I sit down to find my next piece of investment real estate, there’s a long list of things I’ve learned which are like little ornaments on the Christmas tree of revenue property. Some are more important than others, but here’s my list of things that make me happy.

  1. Three bedrooms or more.
  2. Half-bathrooms I can easily make into a full bath.
  3. Properties 1-2 streets off a main drag.
  4. Properties 2-3 doors down from an active intersection.
  5. Powerlines. Being next to, or able to see, powerlines reduces the purchase price by $10-30,000 but only cuts the rent by $50-100/month.
  6. Green Shag Carpet
  7. Cat Vomit
  8. Oooold cabinet fronts with ok cabinet interiors.
  9. Holes in walls (like the picture above)
  10. Square buildings
  11. Broken garage door openers
  12. Broken or very dirty appliances.
  13. Half-completed renovations
  14. Yards full of dog poo, broken equipment and more crap.
  15. Garages with a good door and minimal wiring.
  16. Carpet over old hardwood!
  17. Kitchen pass-throughs I can tear out.
  18. Random kitchen/diningroom walls we can take down.
  19. Wood or textured siding on interior walls.
  20. +90 Days on Market
  21. Listed privately, then on MLS®, then privately, then…..
  22. Dead cars on the driveway

What about those of you who buy ugly houses? What are your favorite goldmine signs?

Photo: Bowling Ball in Wall on Flickr

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    { 4 comments… add one }
    • Rachelle November 30, 2010, 7:25 pm

      Cat urine smells like money to me 🙂

      • Chris December 6, 2010, 6:45 pm

        True, but sometimes it’s money going out as you have to replace the flooring, sub-flooring and HVAC ;). I’m sure you’ve seen your share of “pet-over-friendly” buildings.

    • Mark Loeffler December 3, 2010, 10:09 pm

      I love the bowling ball in the wall.

      along with green shag I have to say Gold Shag carpeting.

      And

      Hard Wood floors buckling due to dog urine.

      • Chris December 6, 2010, 6:46 pm

        There are limitless possibilities for ugly carpeting, but there’s always one that surprises me.

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