How To Evaluate An Investment Property

December 4, 2020 – Real Estate Investing

The prospect of evaluating an investment property or apartment is daunting. Even after finding a quality location with a strong job market and population growth, making sure it’s a good neighborhood choice requires you to take research to the next level when doing your due diligence. You can always update and fix a house, but you can’t change its location, the neighborhood, or the vibe of the community.

There are plenty of quantitative and qualitative factors to consider. Even though a neighborhood you’re targeting might be part of a thriving market, there are also unique characteristics you must consider that will affect your investment’s performance. Working with a top-rated multifamily real estate investment company can help you save a lot of time and money by doing all the work for you.

Consider these factors if you want to effectively evaluate an investment property:

Low Crime

Renters and homeowners have similar priorities, safety being at the top of the list when choosing a good neighborhood. A neighborhood with a low crime rate is safe and can keep property values steady for years to come. Most people want to live in an inviting and safe place, allowing them to be outdoors and associate with other neighbors.

When looking at a specific property in a submarket, examine crime statistics and criminal activity. Law enforcement agencies typically track crime statistics and will provide you with accurate information. Consider talking to the local police to see what crime is like and if it has been an issue in the area. Websites such as SpotCrime and CrimeReports can also give you an overview of curated crime in the area.

If a high crime area is financially attractive, view it as a red flag and move onto the next location.

Good Schools

After evaluating crime statistics, look at the school data for your next potential investment. The quality of the local schools and the distance from the apartment are both critical factors to consider. The school district’s ratings can directly impact your property’s value and ability to attract renters.

People with school-age kids want quality education for their children, and an apartment complex with access to better-than-average schools will attract these renters. Avoid investing in areas with below-average schools.

One of the easiest ways to check the school quality is to visit the local school district’s website and check the performance of nearby schools. Online report cards will often include information about the school’s demographics, test scores, and graduation rates. Some websites will also allow you to read reviews and compare data between schools.

Attractive Retail

Your next step is to look at the overall retail environment. A great neighborhood should have amenities such as shops, restaurants, and grocery stores.

Most people prefer to visit convenient places. A location populated with recognized chains, for example, reflects an economically vibrant and safe neighborhood.

The presence of nationally known retail stores and chain restaurants appeals to renters as consumers. It also shows that large corporations have researched and approved these areas for their businesses. The presence of stores such as Target, Home Depot, and Starbucks are great stores to look for in desired markets.

Proximity to Jobs

Commuting to and from work is a big part of many people’s days, and most people tend to look for apartments closer to their jobs.

Look for a neighborhood with several places for employment to attract and retain your renters. Great examples to look out for include government offices, college campuses, and medical centers.

Similarly, an apartment with easy access to roads and public transportation will be more desirable than one that’s off the beaten path.

Future Plans

Future amenities matter as well. Plans for new public transportation, schools, and other infrastructure can improve an area’s property values.

Commercial properties can also make an area more attractive to additional investors. When you’re evaluating an investment property, try to establish whether any new public, residential, or commercial developments are planned and consider how their addition might affect the surrounding area’s desirability.

The Appearance of the Neighborhood

The neighborhood’s appearance is also critical—people like areas with quality landscaping, trees, nearby parks, and community spaces. You can also judge a neighborhood’s popularity based on how long properties in that area stay on the market. A quick turnover indicates that you’re not the only one who thinks it’s a desirable place to invest.

Call a Professional

Now you know how to evaluate an investment property. Therefore, when you begin looking for an investment property, make sure the neighborhood has more than just desirable qualities. Consider the objective qualities such as good schools, attractive amenities, safety, proximity to jobs, and plans for future amenities.

Are you seeking a multifamily investment opportunity? Call Yankee Capital today at (781) 400-8778, and let us help you unlock the true potential of your investment.


We welcome inquiries from domestic accredited investors as well as international investors seeking multifamily investment opportunities.

Schedule a call

Related articles

investing in real estate

The Hunt for Yield

September 14, 2021

Interest rates are low, inflation is rearing its head and equity markets are at all-time highs.  This puts many investors at a crossroads and in need of a strategy that can generate income, hedge against inflation, and is largely secular to the equity markets, and our recommendation would be to look at investing in commercial […]

Read more »

Top 10

The Top 10 Reasons to Invest in Multifamily Real Estate

August 11, 2021

We all know we should be investing in real estate, so what is holding you back? Our team has put together the “Top 10 Reasons to Invest in Multifamily” as a guide for you.     We highlight some of the many benefits that come with investing in multifamily real estate gathered from our years […]

Read more »

Webinar on Multifamily Execution and Adaption – A Case Study

July 22, 2021

Now available: If you’re considering investing in multifamily properties, this webinar will illustrate how our strategy and execution make our investments a success. We show you the numbers and explain how we’ve delivered value creation in our first fund.   A replay of the live event can be found HERE     As always, please feel […]

Read more »