Scouting Canadian Properties for your Real Estate Investing Portfolio
Considering a few practical elements may help you choose between an adorable rental property in the middle of nowhere or a tear-down shack with long-term potential. Keep these factors in mind when you’re evaluating a property:
Price: Compare the asking price of a property to the average sale price for the area. An undervalued property in a good neighbourhood stands a better chance of increasing in value than an overpriced home in a neighbourhood that’s going nowhere.
Condition: You may be getting a great deal on a property but if you haven’t counted on the cost of long-overdue maintenance, you may face a losing proposition. Though you may be able to make something of a property, if the improvements cancel the potential return, what’s the point?
Cash flow: Make sure you can attract tenants to a property if you’re counting on cash flow, not just a rising price, from your investment. Remember to balance the projected cash flow against operating costs, to ensure your income stays ahead of expenses.