--- title: The Real Estate Maxim to Take with a Grain of Salt description: Location, location, location is a cliché that almost everyone knows. Like most clichés, it tells some of the story, but not all of it. Location is important when looking at a property, but it is not everything. Here some other things you need to be focusing on when selecting a property to flip. image: https://www.trustdeedcapital.com/hubfs/Stock%20images/Architects%20at%20a%20construction%20site%20pointing%20at%20a%20house.jpeg --- [![Trust Deed Capital](https://www.trustdeedcapital.com/hs-fs/file-16494019-png/images/trust-deed-capital-logo.png "Trust Deed Capital")](https://www.trustdeedcapital.com/) CALL 1 (888) 563-5588 Search ![Hard Money Lender Investors](https://www.trustdeedcapital.com/hs-fs/images/blog.png) ## [The Real Estate Maxim to Take with a Grain of Salt](https://www.trustdeedcapital.com/blog/the-real-estate-maxim-to-take-with-a-grain-of-salt) Posted by [Ken Meyer](https://www.trustdeedcapital.com/blog/author/ken-meyer) on Tue, Dec 18, 2018 - [Tweet](https://twitter.com/share) ![House flipping partners examining a house to buy for rent](https://www.trustdeedcapital.com/hs-fs/hubfs/Stock%20images/Architects%20at%20a%20construction%20site%20pointing%20at%20a%20house.jpeg?width=300&name=Architects%20at%20a%20construction%20site%20pointing%20at%20a%20house.jpeg)Almost everyone says the three most important words in [real estate](https://www.trustdeedcapital.com/the-best-of-real-estate-investing-articles) are Location, Location, Location. They are not. As an investor looking to buy a rental property and to make money on it from Day 1, the three most important words are: Location, Condition, Price. Let us briefly discuss each one so you will know why you should take that maxim with a grain of salt. ## Location Yes, the property must be in a [location](https://www.trustdeedcapital.com/blog/5-things-you-have-to-know-before-buying-a-property-to-flip) that your prospective tenants will find attractive. If you want to rent to students, being close to college campuses makes sense. If you want to rent to young professionals, then close to good transport, close to places of employment, and close to stores, restaurants and, say, public parks makes sense. So Location is important, but it is not the only criterion savvy investors base their decisions on. ## Condition This is another critical issue. Who cares what the location is if the property has mold, termites, old aluminum wiring that keeps failing, the HVAC system needs to be replaced, and the roof leaks. How much money and time will it take to get this "perfectly located" property ready to rent out? Condition matters as much a location.   Even if the condition is not as dire as just described, would a young professional want to live in a home with poor curb appeal, old fashioned decor or worn carpets. No matter how low the price, a young professional couple want a home they can invite their colleagues into for dinner or a social weekend, not one that will embarrass them. Condition is important and can affect how easy it is to attract your target market. If you are a "fix and flip" investor how much fixing will be needed, and at what cost, to make the initial investment worthwhile so you make your profit? ## Price Over-paying for a good location and great condition breaks one of the basic rules of savvy investing. If you pay over the market value, then it will take longer for rental income to become a profit center, or you will make less profit when you flip it. Every property has a market value based on location, condition, size, age, etc.   Some sellers are very motivated and may take a low offer because they need to liquidate, or they inherited the property and just want to get the cash. Finding a very motivated seller who will sell at an attractive price is a great way to maximize profit. ## The Takeaway Location, Condition, Price make a lot of sense when it comes to a real estate shorthand rule. Location, location, location is just too limited. 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