If you wish to become an investor and buy a property you will rent out, there are some important things to keep in mind. This type of purchase is much different than buying a home for yourself.
Certain aspects of a property may make it more desirable as a rental and could impact your ability to find tenants. It is essential to know what makes an excellent rental purchase.
Condition of the property
As with any real estate purchase, you want to be sure you are buying something that is stable and solid. However, when your plan is to rent, ideally you want a property that is ready to go. It should not need a lot of major work. Some painting or minor repairs are no big deal, but avoid properties that have a structural issue or would need major renovations. The time you spend sprucing it up is money lost from potential tenants.
Location of the property
Location is always important in real estate regardless of what you are buying. With a rental, it is even more important. You need to look for a property that is in an area where people will want to live. The location will impact how much you can charge and the type of renters you will attract. While properties in nicer areas will cost you more, they also will be easier to rent and draw renters who are more likely to not cause damages or problems.
Rental market in the area
You should also give the rental market a good look prior to making a purchase. You want to know if there are renters looking for homes, how much they are willing to pay and what areas they are most interested in. The market can help guide you to where to look for a property.
Buying a rental property is a great investment. But there are many sides to becoming a landlord, starting with ensuring you pick the best possible property.