Whether you’re looking to purchase a home for yourself or as an investment property in Dallas and the surrounding areas, there are many things to consider prior to closing on a deal. Schools, neighborhoods, crime rate, neighbors and access to public transportation are just a few things buyers take into account before settling on a property to purchase.
There are various requirements to weigh more than others, depending in your specific situation, e.g., access to public transportation isn’t as important in Dallas as it would be in New York and the neighbors won’t bother you so much if you’re purchasing the home as an investment property (though they could affect your renters).
Another thing to keep in mind is that purchasing an investment property is quite different from purchasing a property you intend to occupy as your home. Purchasing a Dallas investment property is a business and financial decision, whereas purchasing your own home is based more on an emotional response.
What might make sense in a home for yourself won’t necessarily make sense for your renters. You might not be able to live without that wraparound porch, but that might not appeal as much to a renter as say, extra storage space. You might prefer to purchase a 3 bedroom home to have extra space for guests, but a renter might need that 3 bedroom home for themselves and their children.
If you intend to purchase a Dallas investment property, the size of the home you buy will have a direct impact on your return. Purchasing a 2 bedroom home in a developing community where families are settling might not be as good of an investment as a 3 bedroom or larger.
An investment property is just that – an investment. It’s meant to generate income and be an asset. Purchasing a home to occupy is also meant to be an asset, but a home is meant for private enjoyment, not to generate income.
So when looking for a property to purchase, know what you intend to use it for. Are you buying for yourself or are you buying an investment property to hold or rent out? Knowing the purpose will help you know what to look for and what will give you the best return on your investment.
Guest post by Karissa Valverde
MyHouseDeals.com