Buying a rental home is a very important decision. You don't want to put up for rent just "any" home, so make sure its a great investment first. Always do your research so it doesn't come back to hurt you. I will go into detail on the 5 things an investor needs to think about before buying a new rental property investment.
Location:
Location is one of the most important factor's an investor should look at. If the home is on a quieter, safe street, it is more likely to possibly have tenants stay for a longer term. Job opportunities are also important regarding the location. Everyone needs a job in order to pay rent, so many tenants often shift rentals to be nearer to work. If the rental is in a smaller town with little work, the rental may take awhile to fill. Tenants also find it important to note how close the home is located next to parks, dining, shopping, and other entertainment.
Crime:
Is the rentals neighborhood safe? Especially when it comes to a person's home, everyone wants to feel safe. Before buying a rental property, make sure to check the crime rate statistics that can be easily viewed online. If the crime rate is higher in the area, it may be a lot tougher to attract tenants to.
School District:
Education is not only important to many tenants but can also be a desirable factor as to why a tenant wants to live in certain areas. Do research on the different school districts in the areas, so you can figure out a district that could attract your tenant. A school could also cause a tenant to want to live in your home for longer term so that their kid finishes education there.
Property Taxes:
Property Taxes can very depending on where the home is located. It is important to factor the taxes into the total price of the home. You do not want it to take you by surprise after you have purchased the home.
Ultimately, doing your research before buying will allow you to spend your money wisely. It is wiser to be educated on a home purchase than uneducated and have to watch your investment money go down the drain. As always, never be comfortable. Be cautious.
