From the first decision to invest in real estate to actually buying your first rental property, there is alot of work to be done. This task may be daunting for first time investor. Owning and renting property is a tough business and the field is peppered with landmines that can opbliterate your returns. Here are some things you should consider when shopping for an income property.
Starting your search – Although at face value you may feel that this is something you can do without professional assistance, having an experienced and knowledgable helping hand can take the pressure off you with regards to locating and researching the property that best suits you. Your investing range will be limited by whether you intend to actively manage the property re let a property Management take that hassle off your hands. If you intend to actively manage the property yourself you should not invest in a property that is too far a distance from you. However, allowing Homefinders to manage the property on your behalf would open up the field of possibilities for you with regards to what you can purchase.
The most important factors to consider when looking for a property to rent out are as follows:
- Neighbourhoods – The quality of the area in which you buy will influence tenants you attract and how often you face vacancies. For example, if you buy in a neighbourhood near a University, the changes are your pool of potential tenants will be maily made up of students and that you will face vacancies on a regular basis (i.e. every summer when the students fo home.)
- Have the property professionally appraised by Homefinders. This will make sure that you are getting the best value for money and give you an idea of the renting potential of the property itself.
- Consider the businesses and amenitites in the area. This can also give you an idea for the type of tenants you may attract. A propery to rent near a business district will attract working professinoal, whereas a house near a school in the suburbs will attract families