Valuing Properties
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      What makes a property risky?

      What makes a property risky? Jordan Brewer

      There are many factors which can determine the overall risk of a property. They mainly have to do with where the property is located and the condition of the property itself. The more serious risk factors include:

      1. The property having above 4 units

      2. The property being rural, agricultural, recreational, a manufactured or mobile home

      3. The property being in a blacklisted area

      4. The property's ARV being less than $60,000

      5. The property having any methamphetamine use or manufacture, significant mold issues, fire damage, foundation problems or roof truss problems

      6. The property having less than 2 bedroom and 1 bathroom

      7. Adding to the property's foot print or new exterior walls

      8. The property having only well water

      A comprehensive list of these risk factors can be found in the 'Risk Analysis' tab of the Advanced Deal Analysis tool, which is located in the Member's Area under the 'Software' tab. For direct access, click here.

      You can check out our YouTube video: How Is Risk Measured in Real Estate

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