When it comes to most things, buying sight unseen is a huge risk. Unless you’re in a gambling mood, it’s safe to say that this isn’t a great strategy for most deals.
For this reason, it may behoove you to complete in-person real estate market research before making your next apartment deal. That involves actually visiting communities in the markets you currently have your eye on.
The question is, how do you make each property visit count during the process of selecting a target real estate market? After all, time is money.
Here’s a rundown on what to look for when completing in-person real estate market research and visiting apartment properties.
One of the smartest steps you can take when completing an in-person target market analysis is to check the area immediately surrounding the apartment complex you’re thinking about buying. Ideally, your target property will be close enough to retail stores, restaurants, and grocery stores that your tenants will be able to walk to them. Also, make sure that the complex is near mass transportation and employment centers.
Another thing to look for when completing in-person real estate market research is a property that needs a little tender loving care. If some of the maintenance has been deferred, you might be able to purchase the property at a discount. Of course, if you aren’t interested in something that requires serious repairs, look for property that needs smaller touch-ups, such as new carpeting, lighting, appliances, shower surrounds, or paint, for example.
Also, as you walk around your potential investment property, be sure to pay close attention to every detail. Do you notice any issues with wiring, pipes, mold, leaks, or cracks? It is paramount that you know what type of property you’re inheriting, as this will enable you to plan the renovation expenses accurately.
As you complete your in-person real estate market research, double-check to see what the unit mix at your target investment property is like. Search for a building that has a mixture of unfurnished units featuring three bedrooms, two bedrooms, or one bedroom. As a general rule of thumb, it is best to avoid a complex with only studio units, as this will limit your customer (or tenant) base.
This is one of the most crucial steps you can take when visiting apartment properties that you’re considering purchasing. Ask the building owner if you can find out from tenants what they enjoy about living in their apartment complex and neighborhood.
Through tenant interviews, you can find out if tenants have been dealing with certain maintenance issues long-term. In addition, you may find out what extra amenities they’d like to see in the units. Some inexpensive upgrades may be just enough to improve your tenants’ quality of life and thus boost the property’s value.
As mentioned above, gathering information about a target real estate market in-person can help you to more confidently make a buying decision. Fortunately, you don’t have to embark on your real estate market research journey alone, either. I can help you to master property selection through my leading industry resources, including my Best Ever Apartment Syndication Book.
Additionally, tune into the Apartment Syndication School to learn even more about choosing your target markets.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.