If you are a real estate investor, you should have a good idea on what properties to purchase. However, there are those that you'll need to avoid. This guide will go over the top ten types of houses you should never buy (whether it's for investing or living in general).
Teifke Real Estate suggests that these properties will not bode well for those looking for a positive ROI. Not only that, some of these types of houses may not be livable for whatever reason at all. Let's take a look at the following down below.
1. Houses located on or near busy streets
If there is a house that is located on a busy street or near it, these are a no-go for several reasons. The first one is that it poses a safety hazard. Children love to play outside in an area that is safe.
However, a busy street can be dangerous for a young child. The risk of getting hit by a car is even greater compared to a quiet neighborhood. Another is you'll be having trouble backing out of a driveway each time.
You will need to constantly watch for oncoming traffic. Plus, this can be ground zero for so many car accidents. You're better off finding a place that is quieter rather than the middle of chaos.
2. Near industrial parks or airports
Noise, noise, and more noise. This is one of the main reasons why houses near industrial parks or airports should not be worth buying. This will go on day and night.
Trust us when we say that if you are looking for a good night's rest and hate noise, it will be near impossible. If you are searching for properties, avoid houses that are close to these areas.
3. Steep driveways
Steep driveways are a nightmare. Especially if you live in an area where it gets snowy and icy in the winter time. They will be difficult to plow and maintain throughout that time of year.
But the difficulties don't stop there. You have another that will be a year-round headache. That is the challenge of getting in and out of it.
Driveways should be flat and nothing but flat. If it's steep enough to a point where you can go skiing, avoid these houses like the plague.
4. Front yards are small
Small front yards are no good place for anyone. You have children that want to play in a yard that is sizable. Plus, you might have a dog that needs a place to 'do their thing'.
A front yard that is small in size will be a headache. Not only that, it won't give you plenty of space if you want to spruce it up with some landscaping ideas of your own. The more you have in your front and back yards, the better.
Avoid front yards that are little or nothing. It will not bode well for not only the real estate investor but for anyone living in it.
5. Small square spaces
Small houses that have a low number in square feet will feel cramped. You'll feel like you're living in a sardine can. The demand for living in a small space like that is rare, if not, non-existent.
Do not take it upon yourself to purchase a home that is too small in size. How small is too small? As a rule of thumb, you can rule out homes that are less than 800 square feet in size.
6. Flat roof homes
What's the deal with flat roof homes? For one, you have the maintenance issue. The winter months will require you to go up on the roof to shovel off the snow.
Believe us, that's something you don't want to do. When it melts in the spring, you'll have standing water that may leak into the home. Not only that, it's also the perfect place for mosquito infestations.
Another is that flat roofs are not aesthetically pleasing. So if anything, you want something that will look good even if the roof is a bit steep. Flat roofs = fat chance when it comes to purchasing it for rental or living purposes.
7. High crime areas
Needless to say, a high crime area will not be the best place to purchase a home. There are two obvious reasons why. The first one is safety.
Criminal activity can happen any time day or not. Burglaries, robberies, even violent crime can be rampant. Not only that, the condition of the surrounding homes will be less than ideal.
Because of this, it will cheapen the value of the adjacent properties. The price tag may be low, but there will be a reason as to why that is. This is one good reason why you need to do deep due diligence when it comes to property acquisition.
8. Near poor rated schools
If you care about your child's education needs, you want them to attend a school that is rated well. Poor rated schools will not be the ideal place for your child. Especially when it may not provide any of the tools and resources that are essential to their education.
This in turn can drive down property prices. If you are purchasing homes for rental or living, check the ratings of nearby schools. Anything below a C+ should be avoided.
9. Past crime scenes
As crazy as it sounds, homes where major crimes have happened such as homicides or suicides can be a major turn-off for a buyer. When something happens, the stories connected to the place may never go away.
People in the neighborhood will tell you this. Some may even go so far to say that the home itself should be torn down. If the home has a bad reputation like that, it would be a good idea to stay away.
10. Overpriced homes
You'll come across homes that will be priced just above market value. Then you have those that are ridiculously overpriced. If the average home value of one neighborhood is $100,000 and one is being listed for $500,000 then avoid it.
Someone might be getting a little greedy. The reality is the home may not even be worth that much from an appraiser's point of view.