Tips for Finding Investment Properties

Tips for Finding Investment Properties

When it comes to buying investment real estate, you have a lot of questions to answer before you make your purchase. Chief among them is where to buy investment property in Dallas. Whether you’re purchasing commercial, single-family, or multi-unit residential property, you must know whether or not you’re purchasing real estate in an area that’s growing and that will show a positive ROI over the coming years or whether the area you’ve chosen is diminishing and will leave you with a huge waste of money rather than a profitable investment. So, how can you tell where to buy investment property in Dallas?

Take a Drive Around Town

If you live in the Dallas/Fort Worth area, you have no excuse not to do this. Take a drive around the neighborhoods where you’re looking at properties. Do they have access to quality schools? Is there a popular grocery store nearby? What about entertainment and recreation?

You can tell a lot about an area’s growth potential when you look at these amenities. If it has all of them or there are plans for more to come in, you’re probably looking at an area that’s growing and which will give you a good ROI. If not, you should probably move on to the next property on your list.

Call the Tax Assessor’s Office

What are the property taxes like in this area, and when was the last time they were assessed? If the area has recently been assessed, look for manageable property taxes and good market values on homes in the area. Also look at vacancy rates and how long properties stay on the market in the area.

These will give you a good idea of what you can expect if you decide to eventually sell. If the area has not been assessed in some time but is showing growth, be wary. The property taxes are probably due to increase soon.

Call a Trusted Realtor

Finally, enlist the aid of a trusted realtor who knows the market and has experience with investment properties. If you’re looking at foreclosures, talk with a real estate agent who has worked specifically with short sales and foreclosure sales. They’ll be able to give you expert advice on the types of investment properties you’re interested in and will help you make the right decision and proceed with your purchase.