#2. Location, Location, Location
Location is crucial when it comes to buying a cheap home. You can certainly by a low-priced home in many neighborhoods throughout Portland but the neighborhood itself might not be adding any value. When you're looking at a home for value rather than simply a low price, you need to look at the entire picture. Are you buying the best house in the worst neighborhood or the worst house in the best neighborhood? If by fixing up the home to the standard of the houses around this property will increase the value because of the neighborhood?
If the home is in a neighborhood that is run down, dingy, and nearly every home on the block need some serious TLC, fixing up the home will not add value but will actually bring down the value because the homes around the property are not at the same level.
You also want to consider future needs for location. If you're renting out the home consider families that might be moving into the property. Are you close to a good school district? Within walking distance to a park, trails and playgrounds? Is it a safe neighborhood? Have you checked local stats for crime and sex offenders? All of these items may play a huge role in who your tenant will be. Offering them a house in a decent, safe neighborhood will yield more value to whoever decides to rent the property.
The same goes if you are fixing up the house to sell. Flipping a property also means that it needs to be in a good location. You need to be fixing up the house to appeal to a wide range of homebuyers, and this could be families with small children, retirees, empty-nesters or even single people. Does the location fit into the lifestyle for just about everyone?
#3. Utilize the experience and resources of a qualified real estate professional.
Real estate brokers have access to programs and online files of homes that most general homeowners or laypeople do not have. Utilize this research by connecting with a buyers agent that specifically helps people looking for a great deal, a bargain, and a good value.
We have agents on our team that specifically deal with investors, whether it's an investment to flip or rent out. Connecting with a good real estate agent that may have inside resources to new listings, pocket listings, outbound marketing and other websites that list foreclosure homes, short sales and pre-foreclosure properties can get you the first right of refusal on many great deals throughout Portland.