What a home to be an investment?
To ensure you purchase the best real estate, you need to know what qualities make for a good investment property.
Related: Where to Buy Real Estate for Higher Value Investments
The home you would purchase as a rental and the home you buy to live in might not be the same. If you are trying to build an investment portfolio, you must stay focused on the details and the facts vs your personal preferences. By being selective about your investment properties, you'll be able to have a quality portfolio that you won't have to shift around too much as the years pass. Here are some qualities to look for in an investment property:
Since you can't change the location of the home you choose to buy, it's important to consider this quality carefully. You should consider factors such as the proximity to mass transportation options, expressways, stores, clinics and other amenities that will help set your home apart. Depending on the type of renter you are trying to attract, one important aspect to consider is the rating of the local school district since many young families move into certain homes simply to further their child's education. Alternatively, you may have a targeted demographic that is looking for one level living.
Most renters want to avoid doing maintenance so, if a home has a large yard, you can expect to be contracting a service yourself unless your can find a tenant that will do it - usually in exchange for a rent discount. If you plan to take care of all the maintenance, you could find that you spend all your time on the upkeep of the home if it has anything more than a small patch of grass. Therefore, look for yards that are big enough to provide a functional outside space with low maintenance features.
If a home is located in a community that offers extra amenities your property will be more attractive to potential tenants. Whether it's a community swimming pool, playground, walking path or other unique option, single-family homes in these communities usually sell very well. Just make sure the community is vibrant and actually takes care of these amenities so that you fully understand what you're advertising.
While people have different needs when it comes to bedrooms, almost everyone wants at least two bathrooms in the homes that they consider. Therefore, if you want to own a property that's easy to rent, you need to look for one that's built with multiple bathrooms. Once you own the home, make sure to update any out-of-date bathrooms, as this will be one of the qualities that people scrutinize most closely as they tour your house.
The prospect of the income that an investment property can provide can be quite tantalizing. However, since you don't personally need this home for shelter, it's important to stay patient throughout the process. While any property can ultimately turn out to be a good investment if you have enough determination, there are certain qualities that will make your life easier when it comes to the return on your investment.
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