How Does Ark7 Select Properties?

Choosing the right property is the most crucial step in the real estate investment process. If you invest in the right property, you can receive a steady passive monthly income, tax advantages, diversification, leverage, and consistent property appreciation.But if you invest in a subpar property, you may find yourself with a financial sinkhole, and stress to boot.

Ark7 streamlines the entire process of property selection, giving users full control to make their own decisions with regards to property investment. With our advanced filters and wide data collections, users can save time and select the best properties to invest in, without having to research or go through hundreds of real estate listings. 

When purchasing real estate, we prioritize finding properties that have a high investment value, which is primarily determined by the appreciation and the rental income. Our evaluation process includes in-depth research on price, location, capitalization rate, appreciation value, and property condition, and we strive to assess every possible detail of a property to minimize risk.

Ark7’s current selection of Austin properties:

Ark7’s current selection of Berkeley properties:

Among the most crucial aspects we consider are:

1. The location of the property

Nothing matters more than location when selecting an investment property. A property’s proximity to local amenities, top-rated school districts, public transportation, and frequently used freeways can all contribute to the valuation of a real estate property. The reputation and safety of a neighborhood, as well as the history of the area, can also affect a property’s appeal.

To gauge whether a location is optimal for real estate investment, we find the answers to questions such as:

  • What is the local rental rate and the rent-to-sale ratio?
  • What is the historical rate of return of the local real estate?
  • Is the purchase price lower than the average market price?
  • Based on the local economic growth, will the property appreciate?
  • What is the projected rate at which the property will appreciate in the future?
  • Do local policies favor renting or rebuilding?
  • Does the location have a high or low crime rate?
  • Is it convenient for commuting and living?
  • What is the quality of the local school district?
  • Are there any frequent natural disasters in the area? If necessary, what is the cost of natural disaster insurance?
  • What are the recent property tax rate changes?
  • What are the conditions for eviction?

2. The condition of the property

It’s essential to evaluate the condition of a property, beyond simply the exterior and interior. A property in poor condition is not only unsuitable for tenants, but it may not be a viable investment. Ark7 protects its users from investing in poor real estate opportunities by conducting research on the conditions of the real estate property before acquiring and including it on the platform.

To decide whether the quality of a listing fits Ark7’s standard, we research details including:

  • What is the local topography? And, will it negatively impact the foundation in the future?
  • What type of house/property is it?
  • What is the age of the property?
  • What is the condition of the infrastructure?
  • Are the electrical appliances updated and in working order?
  • What is the income level of typical tenants?
  • Will the property be easy to manage long-term?
  • Is there any potential for reconstruction in the future?

We purchased our first property in the Austin Metro Area earlier this year. This single-family home is located in Pflugerville, TX, just a 25-minute drive from downtown Austin. After thoroughly combing through  the Austin area real estate market, we chose this property because it is a short commute from major employers like Apple, IBM, and Dell, has high appreciation potential, and is located near The Domain (an upscale shopping center) and many other desirable amenities. Our first Austin property sold out in under seven minutes, and investors are already enjoying its benefits: monthly cash flow, hassle-free management, and a diversified portfolio.

                                                                    Ark7 Property S1

Explore the amazing location of Ark7’s first Austin property:

Ark7 currently offers properties in Berkeley, California, and Austin, Texas, among other growing markets. Visit the Marketplace to view the full selection of investment properties.

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