Thinking about investing in rental properties, but don’t know where to begin? If you have invested in real estate or would like to, read on to find an overview of some basic ways to identify properties that could be good rental investments. The market has recovered dramatically in the last few years and there are many options for seasoned investors or first timers!
You have heard it before…..location, location, location!
This old adage is true in all situations that involve real estate, and especially when purchasing real estate to rent out. Choose a location close to major thoroughfares, restaurants, grocery stores, parks, or good schools. Location is so important because it can set your rental apart from others that are similar but located in less desirable or convenient areas. It can make your property stand out and can even make up for other shortcomings a property may have, such as small bedrooms or limited storage space. Many renters select rental properties based on location first, and other features second. Although there are cosmetic changes that will take place over the years, location is one of the few things about a property that cannot be changed. So, select your property’s location wisely!
Buy properties that need little or no work.
As a first time investor, it is important to fill your vacancies as quickly as possible to begin recouping some of your costs. Look for “Grandma’s House” or in other words, a home that has been maintained through the years and is just in need of some cosmetic changes to make it “rent ready”.
Think like a renter. Look at the property from a tenant’s viewpoint. It is important to consider all facets of the rental such as location, space, finishes, amenities, safety, and any extras to determine how desirable the property will appear in the eyes of a potential renter. When considering purchasing an investment property think, “Would I want to live here?” and if the answer is “no”, keep looking!
Key features that make a rental more desirable
Nothing beats location, however there certain features that top the list when a tenant is looking for a place to call home. Renovated Kitchens or bathrooms hold a particular appeal and make the space feel fresh and new. A basement or garage is a definite plus. If you can’t get both, opt for the basement. Added storage space, a play room for the kids or a teen-age hangout spot are always a plus.