If you want to make your money grow, investing in real estate is always a good choice. Many new real estate investors start out by investing in residential properties, which can be quite lucrative over time. However, it is important not to be hasty when purchasing residential investment properties. Being an informed investor and knowing what type of properties to look for can make a huge difference. If you buy the wrong investment property, you may not break even on expenses, and your profit will be minimal when you opt to sell. Consider the following things when looking for a residential investment property to buy:
Average Rent Charged in an Area
Most people who purchase residential investment properties opt to rent them out. Renting out an investment property is a wise choice — the tenant pays rent each month while the house appreciates in price. When you're looking for a residential investment property to buy, it is important to do your research and have an in-depth understanding of the average rent in the area. Your best bet is to purchase a residential investment property in an area where the average cost of rent is enough to cover the cost of the mortgage on the property, as well as taxes, insurance, and maintenance.
Quality of School Districts
When it comes to residential investment properties, a lot of people focus on single-family homes. If you are interested in buying a single-family home as an investment, it is a good idea to find one that is in a good school district. If your investment property is located in a good school district, it will be more desirable to families who are looking for a home to rent. Likewise, you will be able to sell the property for a higher amount in the future if it is located in a school district.
Local Crime Rate
A good rule of thumb is to purchase a residential investment property in an area that has a low crime rate. Properties located in high crime areas typically do not attract quality tenants, nor is the average rent rate as high. Take the time to do your research and locate homes for sale in a safe area. If you find a great deal in an area that has had a reputation for a lot of crime in the past, make sure that the crime rate has been declining for an extended period of time and look for areas that are being developed.
Contact a company like Mugsie Quinlan, LLC: Fine Properties to learn more.Share