As a full service property management company, we often work with investors to find new investment opportunities and properties to add to their portfolios. One of the things that we always try to get across to our owners is the idea of price and value, and the difference between those two concepts.
Investing for Price vs. Investing for Value
Price is always an important thing to consider when you’re shopping for a good investment home. You don’t want to spend more than you have to, and it’s exciting to find a great deal. However, price is not the whole picture. We like to look for homes that are a good value. Think about what’s important to a tenant so you know you’re choosing a property that will rent out quickly to a high quality tenant. Location is going to be important, and you’ll also want to buy based on your exit strategy.
Focusing Only on Price – The Dangers
When you’re looking for an investment property in Mesa and you’re only thinking about the price, you can end up with a property that actually costs you more. The home might have a lot of cosmetic issues, or maybe it will need rehab work. It could be in a bad location that will make it hard to rent. There could be functional issues that will require repairs before you put it on the rental market. When we’re working with our investors, we try to help with the idea that looking for value is more important than looking for price. Look at the big picture and remember your exit strategy.
Personal Investment Experience
One of the benefits to working with us at World Class Properties is that I’m also an investor and property owner. So I know how to help our investors focus on choosing a property that will provide the highest return on investment and the property that will get you top dollar down the road when you’re ready to sell.