Interested in buying a rental property? Make sure you follow these four tips before you make a purchase.
There are four tips you should keep in mind if you’re thinking about buying a rental home:
1. Buy in an area that is appreciating. It may sound easier said than done, but if you buy in an area where you may attract bad tenants, your home could end up worse for wear. To avoid these tenants, do your due diligence and choose an area that’s growing in price.
2. Buy a house that is easy to rent. You want something that leases for between $1,200 and $1,800 per month. Since the median rental price is around $1,500, you should always be able to find tenants. If you end up needing to sell the home, you’ll be able to find a buyer as well.
3. Be careful about the age of the home. If you’re handy or able to hire a maintenance person, it’s alright to buy an older home. If not, you need to make sure your home is in good condition. Newer homes are typically built to better standards, so it’s usually better to buy a new home compared to an old one.
4. Buy a home in the area that you know. If you know an area really well, you’ll understand which streets are better than others and where the go-to spots are. This helps immensely when choosing a rental property to purchase.
If you have any questions about investment properties or would like more information, feel free to reach out to me. I look forward to hearing from you soon.