Finding The Right Rental Property To Invest In Can Make Or Break The Return On Your Investment
When you invest in a rental property, you expect to see a return on that investment. However, you can’t just buy any home and expect to see a return. Finding the right home to invest in is an essential piece of the process, and in our last blog, our property manager in Walnut Creek went over a few things to look for in an investment property. Keep reading to learn more:
#5. The Local Vacancies Or Listings
Check other listings in the neighborhood where you’re searching for investment properties. Is there an unusually large number of listings? If so, this could be a red flag that either the neighborhood is going down hill or there are seasonal highs and lows. The number of vacancies is also important to consider. A neighborhood with a large number of vacancies may lead to difficulties attracting tenants.
#6. The Property Taxes
Did you know that property taxes aren’t necessarily the same across the board. In some places, property taxes are much higher than the standard, and in others, they are lower. Understanding the property taxes in the area where you are buying is important, because you’ll want to ensure that the rent will cover them. Keep in mind that high property taxes aren’t always a deal breaker, particularly if you are buying in an area where long-term tenants are common. To learn about property taxes, you can ether ask other homeowners in the area or turn to the city’s assessment office.
#7. The Natural Disasters
Some areas are more prone to natural disasters than others, and it’s important not to overlook natural disasters when finding an investment property. If you’re moving somewhere that is prone to flooding, fires, earthquakes, hurricanes or anything else, not only does it mean that you may have to make repairs more frequently, it could also affect the insurance rates you’ll have to pay.
#8. The Amenities
Your tenants are going to want to have plenty to keep them entertained when they’re not at your rental, and that means that you’re going to want to learn about the nearby amenities. Check for local movie theaters, malls, restaurants, gyms, parks, public transportation, etc.
#9. Future Development
Go to the municipal planning department in the city you’re looking in to ask about up-and-coming developments in the area. If there are plans for new malls, parks, apartments, etc., it’s a sign that you’re buying in a growing area, which will likely mean that there will be lots of tenants to choose from. It’s also important to be on the lookout for development that may hurt your chance of attracting tenants, such as new condos going up in green spaces.
At Stowers Real Estate, we can not only help you manage your rental property, we can also help you find the right property to invest in. Learn about the homes for sale in Walnut Creek and the surrounding areas when you visit us online today.