The only perfect property is the property you just sold for a huge profit. That is either an old joke, or it should be. While there is really no such thing as a perfect property, there are a lot of different things that can contribute to the overall success of a property. These things obviously include the location, the condition (and service requirements) of the property itself, and how much it costs over time versus at the outset. These are a lot of different variables, and one could easily write a book about each one of them. So this is only going to be the smallest overview of the group.
The location of a property has the old saying of repeating it three times, as a way of showing that it is incredibly important. But what a lot of people do not realize is, any location can be made profitable. With effort, you can turn a bad neighborhood into a better one, and you can attract higher paying tenants into an area where a lot of people will scoff when you tell them you bought into it. The trick is often in noticing trends which have not yet materialized, such as upcoming major events which are triggering gentrification.
The condition of a property is extremely important to keeping the money that you make through it. While things such as roofing and painting are fairly long term changes to the place, the lawn is an issue that a lot of real estate professionals do not consider very carefully. A steep grade in the front yard, for instance, can add both complexity and cost to the overall carrying costs of the place. It can also become tricky when your tenants also can not figure out how to mow the lawn.
Finally, you need to consider how much work you’ll need to do when you first buy the place. In some cases, not buying will be far cheaper.