I would like to buy an investment property that is right off of a major highway (one block over with a view from the back yard). How much will this?

Asked by Shooty12, Lubbock, TX Mon May 24, 2010

affect my resale market?

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Bruce Lynn, Agent, Coppell, TX
Mon May 24, 2010
Some people see it as a negative.
Some people see it as a positive.
It depends on your abilitiy to use the location to your advantage.
While normally I would not want to live in a property on a busy street or overlooking a highway,
there are plenty of people that do. Drive from Lubbock to Amarillo and you will see plenty of houses
scattered along the highway....when there is plenty of open land that stretches for miles where people
could build.
One bonus is that for rentals you get great visability of your sign. Investment properties are often valued
by the cash flow....so if you are keeping it rented and maximizing the cash flow by the advantage of the location that is a BIG PLUS.
Web Reference:  http://www.teamlynn.com
0 votes
Gary Owen, Agent, Lubbock, TX
Mon May 24, 2010
Generally speaking, a property with this type of location will be very difficult to resell. I know of one property currently on the market that backs up to a major highway. While you can see & hear the highway from the back yard, it is actually about 2 blocks from the highway. While this location will still affect the resell of this property, it may not affect it as bad as if it were backed right up to that highway.

More importantly from an investment perspective is the issue of what type of tenant does the location of this property attract? Is it in an area that would attract a more transient tennant that would result in a higher than average vacancy rate? The property I referrenced above is located in a neighborhood that has the opportunity to attract a more stable tenant with a higher rental rate.

If I can help with any additional information, let me know.

Gary Owen
gary.owen@coldwellbanker.com
Web Reference:  http://www.Lubbock4Sale.com
0 votes
Oscar Armend…, Agent, Lubbock, TX
Mon May 24, 2010
The questions is very broad. I am not sure what "highway" in Lubbock you are talking about and with out knowing the address and the condition of the home it is impossible for a REALTOR to give you an accurate assessment. If you would like a market analysis please feel free to email. oscara@coldwellbanker.com
0 votes
Don Tepper, Agent, Burke, VA
Mon May 24, 2010
I could answer: "A lot." Or I could answer "Not at all."

Reason: Your offer on the property should reflect its terrible location. Maybe a home a couple of blocks away would sell for $300,000, but this one, because of location, will only sell for $200,000. So you only pay $130,000. Then you sell for $200,000.

So, yes, the location will affect the resale price. So you build that in when you make an offer.

Hope that helps.
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