Are you a real estate investor hoping to expand your portfolio even more? In that case, you’re probably considering more potential properties to invest in, which can give you exciting returns if you choose the right one. However, if this is your first time investing, the whole prospect can be incredibly daunting and overwhelming, which may make you feel like real estate investment is too difficult to do.
Although real estate is indeed a tricky business, doing detailed research into the properties you want to invest in will pay off exponentially in the long run. Here are six features to consider when looking for the perfect rental property to invest in:
1. Location
The location of the property, particularly the neighborhood it’s in, will determine the kind of tenants you’ll attract and the vacancy rate you’ll have. If you purchase a property near a university, your tenants will primarily consist of students, which means you may have difficulty finding tenants during the summer.
2. Property Taxes
Property taxes will differ depending on where you are, so you’ll want to know how much you’ll be losing. High property taxes may seem like a dealbreaker, although these are usually in high-demand neighborhoods that attract long-term tenants, giving you consistent income. However, unappealing locations can also have high property taxes, so this is something to consider. You can find this out by talking to the municipality’s assessment office, as they’ll have all the tax information on hand.
3. Crime Rate
No one wants to live in the hotbed of criminal activity, so choosing a neighborhood with low crime rates is essential. Ask the local police or the public library, who are sure to have up-to-date crime statistics for a particular area. Inquire about rates for vandalism, serious and petty crimes, and observe if criminal activity is rising or declining.
4. Quality of Local Schools
If you’re considering family-sized homes, consider the quality of nearby schools. Though your chief priority is your monthly cash flow, the value of your rental property will take precedence when you eventually sell it. If there aren’t any good local schools, your property’s value may drop.
5. Job Market
Locations with thriving job opportunities attract tenants like flies to honey. You can check with the U.S. Bureau of Labor Statistics to find the specific area rates for job availability, or you can also ask the local library. If there’s an announcement that a major company is opening a new branch in the area, there will be an influx of workers looking for a place to live, giving you a prime opportunity to find long-term tenants. This can also lead to an increase in housing prices, helping you earn more.
7. Amenities
Before deciding on a property, be sure to look through the neighborhood and check the restaurants, gyms, parks, movie theaters, public transportation, and other features that will attract tenants and increase the value of your property.
Conclusion
Looking for the ideal rental property to invest in can sound like a tricky process, but when you know the features to prioritize, the contenders become easier to spot. By using our guide, you’ll have an easier time finding a potential property to own and rent out.
Orlando REO Professionals provide top-notch investment property advice and wealth management, specializing in real estate, bank-owned or real estate-owned properties, and property management in Clermont, FL. Contact us today at 407-704-6924 or info@o-reo.net to find out more about what we can do for you!