When you are purchasing a rental property, you are probably looking at it as an investment. So, you want to purchase a home that will draw people in and end up making you money. There are five different things that you should be looking for in a potential home investment. Let’s take a look at them.
Is the Home Sound and Good Quality?
In general, when you are purchasing something, you want whatever you are purchasing to be of good quality. The same thing goes for when you are purchasing a potential dwelling. When looking at a house to purchase, you want to take into consideration if the building is of good quality. Things you should look at are is the foundation good, are the walls sound, are there any leaks or big issues that will need to be fixed. If there are big issues that you think you can’t handle, then steer away from that property.
Are the Issues Easily Fixable?
If you are purchasing a fixer-upper, you want to take into consideration if the issues that the building has are easily fixable or not. When looking for a residential investment, you want to be able to easily fix potential issues it might have. Fixer-uppers are awesome, but they can be a major pain in the butt if they have a lot of issues that will take huge amounts of your time and money.
What Area is the Home In?
To make the most out of your money, you want to look for places that are in highly sought out areas. Think about the demographic of where you live and what kind of areas people want to live in. For Portland, Oregon, and the areas around it, downtown is an extremely sought-after area. So is suburbia. Portlandians love to set down roots in places that have an abundance of restaurants, areas that have great schools, and neighborhoods that are safe. Look at what renters are paying in the area now and evaluate if the place you are looking at could rent for that much.
Is it Within Your Budget?
Budgets suck, but everyone has to have one. When thinking about buying an asset, you need to seriously consider if it is in your budget. Going over your budget can be a very bad decision and a painful experience. You want to start your new business on the right foot. Stick to a realistic budget that makes sense for your pocketbook. You need to think about if you can afford the mortgage payment by yourself if you do not have any renters occupying the rental that you bought.
Is This a Home You Can Sell in the Future?
Things happen and you may not want to keep your investment property forever. So, when you are thinking of purchasing a dwelling, you need to think ahead about the possible resale value. Questions you should ask yourself are: will this be a house you can sell in the future, will you lose money with the sale, will you gain money, and how hard will it be to sell?
Looking for more information on rental property management? Check out How to Get Your Property Noticed.