If you are thinking of purchasing a rental property, you may be overwhelmed by your options. Selecting the right real estate for sale can dramatically increase your income. However, if you choose the wrong property, you could end up with a money pit. Here are a few things to consider as you select a property to rent out:
Some rental properties may offer a large number of amenities but could be located in the wrong neighborhood. In order to rent a property quickly and have a short turnaround between tenants, you need to purchase real estate in a desirable neighborhood. It's also wise to consider nearby attractions that may increase your tenant pool. If a property is located near a local college, you may have a line of students waiting to rent from you. However, your tenant pool will likely dwindle during the summer months.
How high are the taxes?
Even if you pay cash for the property, you will still be responsible for your yearly taxes. The amount of the property taxes that you can expect to pay reduce the property's income. As a result, before you make your purchase, it's best to investigate how much you can expect to be taxed each year. It's generally easy to locate this information through the local tax assessor's office.
What is the crime rate?
Even if a neighborhood looks friendly, the amount of crime that it regularly incurs can increase your tenant base or lower it. Some cell phone apps indicate the crime rate in a designated area. However, you can also find statistical crime information at a local library.
How are nearby schools rated?
If the rental property is large enough to accommodate a typical family, some of your tenants may have children. Parents are often interested in sending their kids to a quality public school. Thus, it can be wise to check the ratings of the schools for which a property is zoned before you make your selection.
How much will your property insurance cost?
You will need to insure your rental property, but the cost of the insurance can vary, based on the location and value of the property. In addition, it is important to consider your property's chance of being damaged by natural occurrences, such as floods or earthquakes. Insurance for specific types of natural disasters can increase premiums.
To learn more about finding the right rental property, schedule a consultation with a realtor in your local area.Share