THINKING OF MAKING YOUR HOME A RENTAL
Buying a home with the intention of turning it into a rental property can be a great investment, but it's important to do your due diligence before making such a big purchase.
It's also important to use a realtor that has experience with rental properties. An experienced realtor will be able to help you find properties that are well-suited to be rented out and can also provide valuable advice on how to manage the property and navigate the legal requirements. They will also be able to give you insight on the market and the area you are looking at. Here are five things to look for when buying a property to rent out:
Location: The location of the property is one of the most important factors to consider when buying a rental property. Look for a property in a desirable area, preferably one that is close to amenities such as public transportation, schools, and shopping centers.
Condition: The condition of the property is also important. Look for a property that is in good condition, with minimal repairs needed. This will save you money in the long run, as you won't have to spend as much on repairs and maintenance.
Size: The size of the property is also important to consider. Look for a property with enough space to comfortably accommodate tenants, but not too much space that it becomes difficult to fill.
Potential rental income: Research the rental market in the area where you're looking to buy. Look at the average rent for similar properties in the area, and consider how much potential rental income you can expect from the property.
Future appreciation potential: Consider the potential for appreciation in the area. Look for properties in areas where property values are likely to increase in the future, as this can provide a good return on your investment.
Another important factor is to find a reputable lender who has worked with investors. Make sure to get different estimates from your lender for different scenarios and keep an open line of communication with your lender as you progress
In conclusion, buying a home with the intention of turning it into a rental property can be a great investment, but it's important to do your due diligence and consider factors such as location, condition, size, potential rental income, and future appreciation potential. And for your first rental property, it's very important to use a professionals who have experience with rental properties to help guide you through the process, or even better if they’ve done it themselves, they’ll be better suited to guide you into this exciting chapter!
Want to buy your first investment property or thinking of turning your current home into an investment property? My personal portfolio of rental properties have all been hard earned and now they produce income. I’d love to share what I know with you as you get started in this process, message me here to learn more!