Rental Home Purchase
The neighborhood in which you buy will determine the types of tenants you attract and your rate.
A great neighborhood should also include important amenities such as grocery stores, shops, and restaurants. Most people like to frequent places that are convenient—if you have to drive a great distance to get to anything, it's likely to make your house less attractive. Schools are another important amenity—even if you don't have kids, if you want to sell your home in the future, many buyers will be on the lookout for good schools. The quality of local schools and the distance from the house are both important factors to consider.
Finally, don't forget safety. A neighborhood that has a low crime rate and is an inviting and safe place to be outdoors and commune with neighbors is the type of place where most people want to live.
You also need to take into consideration where the house is actually located. In this instance, there are a few things you should keep in mind as you conduct your search.
If the house you want to buy is on a busy road or very near a highway, you can probably get it for a lower price, but it will also be more difficult to sell later on. The same may hold true for houses that stand next to or back onto commercial property, such as a grocery store or gas station, or houses on streets that get an unusual amount of parking traffic and parked cars, such as those near large churches or community centers.
Alternatively, a house with a wonderful view or near a body of water is likely to be more valuable, both now and when it comes time to sell it.
Speak with a Property Manager
When it comes to buying your first rental property, it’s vital that you speak with the property manager. Be sure to ask them the following types of questions:
Avoid A Fixer Upper
It’s always tempting to look for bargain houses with big plans to fix it up. But because you are buying your first rental property, it’s usually not the smartest idea to take on a fixer-upper. More often than not, new property owners will end up spending more time and money than initially anticipated. Instead, look to buy rentals that don’t require much renovating and are listed below market value. You’ll learn plenty of valuable lessons throughout your first experience buying real estate. This is will give a better idea of what you’d be getting into with a potential fixer-upper.