Are you thinking about purchasing an investment property? Whether you’re just starting out or consider yourself a pro, there are many factors to consider when looking for your next investment property.
Before you write your offer, consider these four factors to ensure you make the right choice for your investment.
Regardless if the property you’re considering has everything you want, none of it matters if it’s not in the right location. The location or neighborhood of your investment property and the amenities its near determines the quality of tenants you attract and your vacancy rate. You also want to make sure the area has a low crime rate with easy access to public transportation and amenities such as schools, restaurants, shopping, and more.
Property taxes are one of the costs you cover as an investor, so make sure you can afford them in the target area you are looking in. While high property taxes aren’t always bad, since they are usually in attractive neighborhoods, some less-than-ideal locations with high taxes should be avoided. Be sure to check the property taxes for the property you are considering and see if there are any possibilities for increases in the future.
Educate yourself on the area and see what homes are being rented for so you can stay competitive. You’ll want to make sure your rental income can cover your mortgage payment, taxes, and other costs. It’s also a good idea to take note of listings and vacancies in the area because they could signal high turnover.
Check with the U.S. Bureau of Labor Statistics to see what the job market is like in the area you are looking in. Growing job employment opportunities or properties that are near large employers are known to attract more tenants. Being located next to a large employer usually means more opportunities for higher rent and high-quality tenants.
If you’re looking to venture into real estate investing or have any questions, reach out to us! We would love to offer our expertise and help in any way we can!