Criteria for Buying Rental Properties
By Sadiya Anjum
Investing in Real Estate is one of the smartest ways to make good money. Many people buy rental properties these days but not all of them get the returns they expect. Perhaps several things went wrong along the way. But if they have made a mistake in their first step, then its bound to have been an unsuccessful investment. The first step in buying rental property is buying the right property. Identify the absolute basics which indicate whether a particular property is a cash cow.
Location: You have heard it before and you will hear always hear it. Location is the golden word in Real Estate. When buying a rental property, you need to understand the logistics of a location. More populated city areas are generally popular places to buy rental properties. Places with booming Real Estate means the prices of homes are high and many will not be able to afford owning homes. So there is potential for finding renters.
Facilities: Consider the various facilities in the area – malls, schools, hospitals etc. The better the facilities, the more number of people will want to live in that area.
Transport: Being well-connected to other parts of the city is essential. Even if the property is located on the outskirts of the city, easy access to public transportation will prove to be advantageous.
Future Development: If the area is not that developed but a good hospital is going to be established soon, then buy in that area. Developments will automatically bring people.
Structure of the Home: If the area checks out fine, you need to examine the structure of the home you may buy. A property in good condition means lesser headaches with regard to renovations and improvements. If you are seriously considering buying the property, then get a home inspection done.
Regulations and Safety: The property needs to be built in accordance to the zone codes (say with regard to fire and other safety regulations) pertaining to that area. A very old home may not accommodate these. Therefore a recently built structure may be safer to buy.
Established Rental Properties: If you are lucky enough to stumble upon a well-established rental property then you may just have it all made for you. Homeowners for various reasons may be looking to sell their rental property. If the rental history looks positive, then it will save you the work of starting from scratch.
To find a property which clears all the above criteria may be hard but not impossible. You may be unable to find certain details yourself like the kind of developments the area may see in the future or homeowners looking to sell their rental properties. It is precisely for these reasons why having an agent by your side will prove to be valuable. With his expertise and contacts, you may just find the right property.
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