Investing in a Rental Property
Are you considering investing in a rental property? First off, congrats, that’s exciting and of course we can help you!
But, above all, you need to properly prepare, do your research, and fully understand what you are signing on for. If you know you are ready to move forward with the commitment of being a landlord and you are educated on what it takes in that department then you can check the first to-do off you list. The next step can be a little more fun, and this is where we can help. Looking for the perfect property. Don’t just dive into the first one you see or the one that a friend of a friend knows about. “Every investment property requires a careful assessment of the value of the property, amount of debt you’ll take on, expected income and other operating costs. Those property-specific numbers are also dependent on the local rental industry.” Realestate.usnews.com shared a useful article discussing How Investors Can Identify a Great Rental Property.
we can help you determine the supply and demand for rental properties and rental interests in the area. We can look at the areas average rental rates to determine the level of home you need to invest in as well as the level of work required for upkeep given the demand needs. We can’t stress enough the importance of taking the time to consider your options. Know all the requirements and weigh your options before settling.
Below are the four things the article advises you to consider as you look for the right rental property.
- Find the market and submarket – Where a rental property will be most fruitful.
- Weigh property class options – Submarket that will yield the most demand among renters, also consider the quality of the property you’d like to own based.
- Know the most likely renter – That person is a key component into the kind of renovations and upkeep you’ll need to maintain the home.
- Plan for the worst-case scenario – Whether it’s a recession that hits or even an increase in homeownership rates, there’s a possibility you’ll have to lower rents at some point to attract renters.