Investment properties can be a great way to generate income. However, not all properties are created equally, and it’s important to evaluate any potential investment to know whether you’ll make a sizable return—or if you’ll be saddled with a money pit.
The first step in any real estate purchase is to find comparable properties in the area. The best comps have the similar square footage, the same number of bathrooms and bedrooms, and close proximity. Comps should also have been sold within the past year (although six months is a better time frame).(more…)