If you are reading this you are probably an investor or someone who also works in real estate so I don’t have to ramble on an on about the importance of location. However, there are a few details that I consistently see make mistakes on that cost them hundreds of thousands of dollars long term.
Do not buy anything, no matter how cute or cool it is, in a garbage location. You will get a lot of traction on your listing, but your entire listing will take a dive once people start leaving honest reviews.
Do not buy anything, with power lines in back or with quirks that you can’t change to the property. One massive part of your returns in short term rentals will be in built up equity in your property. If you can’t sell the unit because it backs to a massive power line, or if you take a bath in resale, then you have just shot yourself in the foot.
Great real estate will always be great real estate. Warren buffet once said,” It is better to pay a fair value for a fair product, than to get a deal on a piece of crap.” He may not have said it exactly like that, but it was something along those lines.
Best case scenario, buy the cosmetically damaged home or unit in the area. Buyers are very real emotional people, not one wants to get excited about buying the worst house in the neighborhood. However, this is music to our ears. The key here is to make sure you have all of the numbers in line to get the unit to a point where you can rent it out (remember to include time expenses and always be conservative). A great tip we use is to bring the contractor that will do the work to a showing of the property for him to give you ball park numbers on what he can do, then do your own research afterwards to make sure they are accurate.
In total, getting property in great locations always turns out to be the better move. In short term rentals and cooperate housing, a sudden change in HOA or zoning can have dramatic impacts on your property value or income. Picking where you put your investment is the most important part of the process and also dictates how much you can push the net income. Best of luck and if you need any help, you know where to find us!