Buying a home you can rent out to tenants is a good way to help you begin to build a passive income for your retirement. A good rental property is one that pays for itself as its rent covers all the property's expenses with some extra left over. Here are some tips and insight to help you when shopping for a good investment rental property.
Research Area Rental Rates
When you begin to look at homes for sale that would make good rental properties, it is a good idea to find out what the rental rates are for the area. You want to figure out what each size of home will rent for if you were to buy one similar. Take some time and determine, for example, how much a three-bedroom two-bathroom home or a five-bedroom two-bathroom home can rent for.
A good way to figure out what an area's rental rates are is by calling on similar homes for rent in the area. You can also visit local property management company websites to see what their homes and properties rent for. If you call on a home for rent and the person on the line tells you it has already been rented, ask them how much it rented for to get accurate data. Make a list of the types, sizes, and locations of properties and their rental amounts. This information can help you can calculate if a property's rent will be able to cover its mortgage payment.
Hire an Investor Real Estate Agent
A real estate agent working with you is a good way to improve your chances of having a successful house search and closing on the home you choose. But deciding to work with a realtor who is a real estate investor themselves can help you analyze a property for its potential as a rental home. Ask around with local realtors to find one who has had experience in buying and managing their own rental properties and hire them to work for you.
Your real estate agent can help you find a property that is rentable and will make a good cash flow property. They will be able to help you find properties in their database of listings which are multi-unit properties or single-family homes. Let them know what types of homes you want to buy as a rental and they can help you. Then, they can assist you in evaluating a property for its cash flow. This entails determining how much rent you can charge for the property and deducting your expenses, such as the property's mortgage payment and other expenses on the property.Share
12 January 2018
About a year ago, I realized that there were some serious issues with our home. I could tell that we needed to do something to upgrade our residence, so we started looking for a different property. I was able to find a really nice real estate agent who could help, and they worked hard to pair us with the perfect home for our budget and lifestyle. Now I can honestly say that I love my home, and I couldn't have chosen a better one on my own. Check out this blog for great information on improving real estate holdings and finding a better home.