Buying an Investment Property?
There are many things to consider when you invest in a property to rent out.
You want to make sure you are choosing a property in an area that is desirable for renters. Choosing an area that is appealing to vacationers means you can charge vacation rent prices. Annual rentals tend to generate less revenue than short-term vacation rentals.
If you are buying a vacation rental, it is important to check out the restrictions on rentals specific to the area or even the neighborhood. Some communities with Homeowners Associations restrict rentals to a monthly minimum. There are also city-wide restrictions in some places.
3. Investment Goals and Income Potential
Before buying a property, think about how much revenue you want to make from it. Some properties come with extra costs that will lower your profit. Factors that can affect your profit from a rental property are:
- Home Insurance costs
- Upkeep and repairs
- Property Taxes
4. Market and Rental Trends
Take a look at other rental properties in the area that you want to invest in. It is a great idea to do some research in different areas to compare the potential revenue you could make. Market trends are also a great way to predict how an area with grow in the future and potentially earn you more passive income.
5. Long Term Strategy
Buying a rental property is a great way to generate a profit. You could have a long term goal of several investment properties or making a profit by selling the property for a higher price after a few years. Whatever your goals are, having experienced professionals by your side will ensure your success. Contact us for a free consultation on buying your investment today!