Adding properties to your portfolio is an obvious goal of real estate investing. Adding those properties however means due diligence on the part of the investor and part of that due diligence is often a property inspection. Property inspections can be very basic or very thorough and each investor will have their own inspection style. For me, I at least visually inspect every property I plan to buy. That begins when I drive up to the property. You can easily begin inspecting properties before you even leave your car.
When you drive up to your next potential deal, stop, look around and take note of the following items.
The Adjacent Properties –Taking a look at around a property’s surroundings is important for three reasons. These reasons are the three most important factors affecting the value of any piece of real estate. They are location, location, location. What is the setting of the property? Are the adjacent properties similar? Do you notice problems with adjacent properties such as disrepair, trash, junked vehicles, people hanging out, etc? These are potential issues that can and will also affect your property. Plus, they are not issues that can be easily fixed by you so you want to notice them before you buy. Take a good look around and see what the location, location, location of the property is.
The Front Yard – Here where I invest, most sewer and water lines run from the property towards the street. Those systems can be very expansive to repair and replace so I always look at the front yard for tell tale signs of problems. Are there puddles when it should be dry? Is there water running into the street? Do you see any depressions in the yard or freshly dug dirt? These could all be signs of trouble that you should check further.
The Roof – The roof of any property is usually best seen from afar. You cannot really tell anything about it if you are up too close and below. Because of this, when driving up to a property the roof is often one of the first things I look at. Do you see missing shingles? What about depressions? Depressions can mean a lot of rotten wood. Look closely. In fact, carrying a pair of binoculars is not a bad idea for a quick inspection when you cannot get up close.
The Property Itself – Take a broad, whole look at the property itself, this simple act can alert you a lot of deeper issues. Does the property look clean and well kept? Is there trash or accumulated clutter everywhere? Are the needed repairs obvious and many? Do things seem out of line and out of place? Can you see haphazard repairs made over the years? If you see of lot of the above, you can expect more of the same on the inside and in paces you may not get to see. Plus, these items can tell you a little bit about who may be living in the property and the accompanying issues you may have to deal with if you take this property on.
Property inspections are a necessary part of purchasing any investment. They can be as detailed as you want or need them to be. You can always tell a lot about a property by just looking through your car window. Be sure to keep that in mind as you pull up to your next potential deal.
