Property Site Visit Advice- What to look for

[Jennifer Ullrich]

Hello, 

I'm going to look for my first investment property this weekend and I could use any advice of what to look or watch out for when buying a single family buy & hold.  Any advice would be appreciated.

Currently I'm looking for the following:

- 3 bedroom, 2 bath

- B type property & neighborhood

- will check out the neighborhood during the day & at night

- Location: Deltona, Florida

- Google street views completed

Anything else you can think of when i'm on property?

Your help is definitely appreciated & thank you in advance.

Also, I'm looking to join an investing club in NYC or Northern, NJ, please let me know if you belong to, run or know of any if this area.  

Thank you,

Jen

[Matt R.]

Disclaimer: I am brand new at investing.  I did buy my current residence as a bank-owned property that needed repairs, and I looked at several houses when doing that, so I have a little bit of experience in shopping.

General advice:

Take pictures and make notes as you go.  If you look at more than one house, the details will start to run together.  This can be on a phone, tablet, laptop, or even a paper notepad.  :)  When you first get to each property, take a picture of the house number (mailbox or front of house) first; that'll help you figure out which pictures go with which houses when you look at them later.

The house itself:

You can't give it the same level of inspection that a real official inspector can, but you can look for obvious things.  Are there shingles missing from the roof?  Does the roof looked "sway-backed" or uneven?  Are there water stains on the ceilings, or sagging ceilings?  Big cracks in the foundation walls (if it has them)?  If it's an older property (more than about 20-25 years), have any of the windows been replaced with more efficient ones?  Funny stains on the carpet or floors?  Are the drywall, interior trim, cabinets, etc in OK shape or beat up?  Have the colors, trim, cabinets been updated or is it still 1975 inside?  Does the A/C or swamp cooler or furnace look newer, or is it a 30-year-old pile of rust?  Has anyone stolen wiring or plumbing from the house?  If any of the electrical fixtures are already missing - like a ceiling light or porch light - sometimes you can see if it has copper wiring (good) or aluminum wiring (bad).  The realtor usually won't let you take a fixture apart to check, though.  :)  Is the lawn in OK-ish shape - does it just need a good mowing, or major rework?

The location of the house:

Is it on the top of a hill?  Side of a hill?  In a valley?  Is there an intersection near the house that would lead to car headlights sweeping across the house at night?  Is it on a through street or a cul-de-sac?  Are there streetlights (that work) and fire hydrants nearby?  Anything potentially noisy or otherwise annoying nearby - airport, train tracks, Interstate, big factory, sports stadium, race track, etc?

The neighborhood:

Do other houses have bars on the windows or "cages" over the outside A/C units?  Are other houses reasonably well kept up (lawns mowed, painted this century, lack of dead cars in the driveway, etc?)  If any of the neighbors are out and about, tell them you're thinking of buying the house, and ask about the neighborhood.  Are the city/county-provided things in good shape - like have the streets been paved lately?  Traffic signs present and not 50 years old?

One thing I've noticed in several metropolitan areas is that once a neighborhood is sufficiently sketchy, the stores will stop being well-known national or regional brands, and become things you've never heard of.  Like, if the gas stations are Phillips 66, Texaco, Shell, BP, Hess -> good.  If all you can find is "Bob's Cheap Gas" -> not so good.  Grocery and convenience stores are a little more regional; in Florida, Publix is popular, and if one of their stores is within a mile or two, that's probably better than if it's further away.  If you can identify the regional "premium" convenience store - the local equivalent of probably Wawa (in NJ) or Quiktrip (around me), look at where their store locations are.  Closer to the proposed property is better.

I hope this helps!