As mentioned through various articles published on this blog, my objective is to invest in real estate this year. And my research focuses on “income property” type properties, for several reasons, including:
After a few visits and research, after a first building at first sight interesting and finally rejected, a few properties caught my eye, among which 3 buildings each having different advantages and disadvantages, and on which I would like to have your opinion. Let’s see in more detail what it is all about.
For each good, I noted 2 categories of criteria: on the one hand the context (surroundings, city,…), on the other hand the figures. The descriptions are intended to be brief and highlight the elements that I believe, perhaps wrongly, to be structuring for making a decision. Let’s move on to the presentation of the candidates!
Investment property A is located in a city of less than 20,000 inhabitants, 50,000 with the associated urban area. It is a 5-minute walk from the city center and its weekly market, 5 minutes from a Ca…our shopping center and even closer to a park with green spaces and playgrounds. The building is old , but everything was refurbished less than 5 years ago. As for the numbers, we have:
Investment property B is located in a similar town, less than 20,000 inhabitants, 30,000 with the urban area. It is also 5 minutes from the city center, close to the train station, and a park is just behind it. Again, the building is old, and even if it is clean, no recent upgrades have been made to it. Let’s get to the numbers:
And finally, apartment building C is in a larger city, 50,000 inhabitants, 120,000 with the urban area. In a district mixing houses and buildings of less than 4 or 5 floors, it is old but has been refurbished in the last 5 years. The quantified characteristics are:
From my analysis, each of the buildings mentioned has its strengths and its weaknesses, its advantages and its faults.
These are just some of the thoughts that cross my mind about these different properties. I remind you that this is a first investment. Also I seek your opinions on the subject, which I invite you to publish in comment. Thanks in advance everyone!
With close profitability, should we favor a lower financial risk with the cheapest property to buy? Should we favor the one with the highest monthly cash flow, at least in theory? Are there elements of decision missing in what I expose here? For a first purchase, which one would you turn to?