There is a lot of good done when looking at buying a home as a first-time buyer from a seasoned investor’s perspective. Remember “I ARTFUL”
- (Appraise = A) What is the home going to appraise for if all things in the market remain the same, in the future?
- Look at the average increase per month and factor those numbers out 6 months and a year.
- Ascertain when you may have enough leverage to withdraw enough money from your equity to buy a 2 or 3 bedroom investment property.
- (Tanks = T) OMG – what if the market tanks – where is that needles potential re-reduction?
- (Updating = U) What updating can be done to the home from where it is presented to add more value than the cost of the work?
- Look at repairs versus re-hab feats. Repairs – getting the sinks from leaking. Re-hab – changing the plumbing to PEX from galvanized or copper.
- (Improvements = I) Are there changes that will bring exceptional value to the property?
- Adding an additional bedroom and bathroom in Encino to a home costing 50k can bring 300k in the new value. – as an example.
- (Land = L) Is there nearby land which can be purchased to add to the subject property?
- Vacant Lot, capturing an adjoining piece of city property to take over maintenance, etc.?
- (Rent = R) If you had to rent the home out in “as is” condition?
- What would be the price you could obtain?
- What type of renter would you get?
- Cash or check payments?
- Are there restrictions with regard to raising rents? (rent control)
- (Future = F) Future developments and future building which may add or detract from your home’s overall value?
- Maybe there is a vacant lot behind your home where a mini market is going to be built?
- It could be there is vacant land behind your home where a tract of homes is going to be built.
- Maybe a park will be built on a vacant piece of land next to your home?
- Could be your home is on a culdesac – what is the change of that opening up and becoming a through road?
- Are school district boundaries being redrawn potentially?
I ARTFUL –
I – Improvements
A – Appraise
R – Rent
T – Tanks
F – Future
U – Updating
L – Land
These are only seven items which you should look at when buying any real estate. Whether you are an investor or a first-time buyer. Items which should be found out or at least considered when buying real estate.
I’m Connor MacIvor and have been representing all types of home buyers and sellers in the Santa Clarita Valley cities and within the Greater Los Angeles Areas. Reach out to me when you are ready for my representation. Be safe and Talk soon. Also, if you’d be so kind, and know someone who is wanting to buy or sell real estate, refer them to me.