Red Flags to Look for When Buying an Investment Property

investment property

An investment property must be chosen very carefully.  When we purchase a property for investment, we expect a lot of returns from it and thus, it must be purchased smartly. Any indications which state that the property is not worth investing must be considered seriously!

You are to become an investor and thus, have to analyse the pros and cons of purchasing any property. This will help you get the best deals and desired returns.

Before this, here’s a question which may strike your mind

Why do you have to be so thoughtful while buying investment property?

You must have heard of incidents where the landlords pay quite a huge amount for the property than it’s worth. Also there are cases where the landlords won’t find tenants, the property gradually loses its value, desired rent is not obtained and much more! This is due to all such deceiving sellers who simply want to hand over their non worthy property to you!

Thus, to stay away from frauds and to invest the money in worthy property, you need to consider these indications!

Red flags of investment property you must know:

  1. The neighbor

Would you invest in a property which is surrounded by buildings older than our grand mother? Obviously no, as its old construction can get damaged anytime! Though the property you will be buying is new, the construction must be old covered with modern interiors and furnishings! Do not get betrayed by the outer look and focus on the originality.  In case the property you are considering is brand new, still would your tenants like to wake up at a view of old, broken and crooked buildings? Remember everyone needs a beautiful view and a good neighborhood while looking for a rental property!

  1. The property is celebrating its nth anniversary of being the market!

If the property is since long in the market and is still not getting sold, there’s something cooking! A property does not get sold due to ample of reasons. It can be too expensive for its worth, it needs a lot of repair, it’s stuck in a poor location, it’s far away from the city etc. are the reasons due to which, even you must remove it from your list!

  1. The seller is not allowing you to inspect the property

If a seller behaves like a culprit who seems to hide the defects and drawbacks of the property while not letting you do your inspections, there is a problem! In this case, the seller does not want you to find out the problems in the property and want to simply transfer this responsibility on your head and get rid of it! Do not get trapped in such tactics and never purchase a property until you are satisfied with your research!

  1. Low price than its actual worth – a big No No!

Who will sell the property at a price lower than its actual worth? Nobody would do this until and unless there are some huge defects in the property. The house may need intensive repairs for unaffordable price. The seller tries to hide the damages by setting a low price for the property. This also includes electrical damage costs, roofing issues, water supply problems, and other maintenance issues. Don’t get tempted by the low price trap!

These are the top 4 red flags which you must analyze before purchasing an investment property for preventing frauds!


You may also like to read –This Is Why Your House Is Not Selling


By | 2018-02-09T10:53:13+00:00 December 15th, 2017|

About the Author:

A post graduate and gold medalist in English literature with great passion for writing. I am an avid blogger and love to write e-books, the latest platform of global interest. I firmly believe in the healing power of writing and how it works fantastically to improve one's creativity as well as personality. Life is too short to express yourself so, keep writing and enjoying.

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