Rental properties are a great investment because they generate revenue and you can basically live in them should the need (or want) arise. There are a lot of options to choose from and sometimes a decision to buy can become quite difficult. However, it selecting a rental property should never be a daunting task.
The first step in purchasing a rental property is determining your needs. This usually starts with your budget, how much can you actually afford to spend before anything else? Think of your market at the same time, as a rental property per se will only be profitable if people will rent it out. Are you looking at targeting the low end of the spectrum, or do you want to target the high-end high-income rental market?
Once you’ve determined these parameters, you should start shortlisting properties in neighborhoods that are desirable to you. Remember, location is a critical part of a renter’s decision to pick a property that is close to their place of employment, education or leisure spots.
You should have a pretty long list at this point and it is important that you start narrowing it down to a few properties. Be real with yourself at this point, can you really afford it? Does it only appeal to you and not to your market?
Visit these properties and explore their flaws, but don’t forget their good points as well. These will serve you in the negotiation stage with a potential rental client. It would also help if you bring along someone who’s well-versed in looking at property as they’ll be able to provide you with good opinions and insight.
Lastly, after you’ve checked the potential properties out, it will be time for your final decision. Sleep on it if you have to, but know that if you picked right, you’ll soon be reaping the rewards!