7 Indicators of St. Louis Investment Property Quality
St. Louis real estate investment may seem like a more secure form of investment than the stock market. After all, people will always need houses, right? The truth is that a poorly thought-out real estate investment is as risky as a stock market impulse buy, if not riskier. Generally, you invest more in a St. Louis investment property than you would invest in any stock at one time, and properties are more difficult to liquidate when you realize they were a mistake.
Use these indicators to detect a dud St. Louis investment property before it turns into a burdensome investment:
Construction plans
Bustling construction is a double-edged sword when it comes to investment properties. Construction may be a sign of growth in the property’s area, which could mean more potential renters. Or construction could mean the loss of natural areas that would once have attracted renters. Contact the municipal planning department to get the down-low on future projects before you invest in a property.
Accessibility
Many potential renters would like be stationed near public transportation, so they can save money on gas and live greener on their daily commute. Zero renters would like to fight for parking at their home or to have to pay to park in a garage. Determine how accessible a St. Louis investment property is, and you will know if you can use accessibility as a selling point or if you need to reduce rent to compensate.
Crime rates
Renters will not be interested in renting a home in an unsafe area. Read up on police reports for the area of any property you are interested in. Try to understand trends. Is crime rate increasing or decreasing?
Vibe
In order to know what kind of renter you should market to, you need to know what kind of area a St. Louis investment property is located in. Is your property wedged between a string of college frat houses? Is it on a cul-de-sac full of backyard grills and tricycles? Envision the kind of renter who would live in your property and the amount of rent they could afford. This is how much you can expect to make.
Local economy
If your tenant is going to be paying you rent every month, he will need steady, gainful employment. Try to choose properties in an area with the economy to support your tenants. Otherwise, you might find yourself in the extremely uncomfortable position of having to evict.
Area attractions
The proximity of certain attractions can add “wow” factor to your property. Is your property located near a historic landmark? Is the backyard touching park? Any special attraction is a bonus for you.
Property taxes/insurance
Determine the cost of property taxes and insurance for the area of the property you’re interested in. Taxes and insurance are going to take a bite out of your monthly income no matter where you choose your property. Try to minimize that bite as much as possible.
Choose your St. Louis investment properties carefully and consider all aspects of their appeal. When you know your property well, you will have an easier time finding tenants and making an income. Your investment will see greater return!