by Alexandria Anderson
When you are deciding what parameters your desired investment property should have, you don’t need to rely entirely on what someone else says is important. Use your own financial goals and needs for determining what to look for. However, it may help to consider the things that are also important to other people.

For example, Ken McElroy, author of “The ABCs of Real Estate Investing,” prefers to buy properties of “substantial size,” so that they will pay for the hiring of a property manager. He simply does not wish to play that role. It would probably be a waste of his time to do so anyway. By hiring a property manager, he is able to scout for even more properties, to make even more money.

Another thing that should be part of the litmus-test for everyone is whether or not the property is going to require extensive renovation. McElroy refuses to consider properties past a certain age. Even if such a property were in good shape, which is doubtful, it will probably be missing some amenities. In this case, you couldn’t charge as much rent as with other properties. You will have to spend more money and time getting these properties up to code. Why bother with investments like that when, with just a little more effort, you can find a property that needs less repairs and will bring in more rent?

Remember how vital the location is when buying an investment property. When deciding upon your market, always remember that the majority of people would prefer to buy rather than rent. So, unless it is a lot more expensive to buy in a particular area, you might have a difficult time finding and keeping tenants.

McElroy also likes to target out-of-state owners who own only 1 or 2 properties in a particular area. Many times these owners do not keep their properties up to the level at which they could operate, because they originally underestimated the cost and time it would take to nurture out-of-town properties. Sometimes these owners are anxious to let someone take their properties off their hands.

No matter what kind of deal it looks as though you will be arranging on a given property, be cautious not to buy something at a “good” price if it is in a bad location. Remember that the only reason you are purchasing investment property is to make money. If it is not going to generate income, then NO price is a good price. It won’t going to make money if it is in a poor neighborhood. It is not going to make money if it is in a community who don’t have jobs. It won’t be making money if it is in an area that is suffering an exodus. If there are no people, there are no prospective tenants.

These are some of the qualities that an investor should consider when researching potential properties, and they will help you on the road to discovering what you really need in an investment property. Your focus is finding good opportunities that will make you money. Look for properties that are in good shape and good locations. Make sure they are where the people are and where they want to be. If you keep those ideas in mind, everything else will fall into place.

Are You Looking For A Real Property Investment? Alex Anderson Specializes In Investment Property Sales and Services For People Who Want To Make Money With Real Estate. Get A Free Copy Of "The Investor’s Rental Guide" By Visiting: http://www.GreatInvestmentProperty.com.

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