There’s a reason a number of wealthy magnates and prominent families have invested in property over the years: this type of investment is often more stable than the stock market, and by hiring a reputable rental property management company, you can be sure that your investment will be well-maintained and profitable. Moreover, property investment companies can often help you find a variety of options to choose from, whether you’re interested in owning an apartment building or would prefer commercial property management. But how do you choose the right properties to invest in? Read on to learn how to avoid the money pits and find the investment opportunities that will allow you to profit.
Every different type of rental property will have unique advantages and consequences. As a result, knowing the basics of each will help you focus your search and also find the right property investment model for you. For example, multifamily properties usually have more cash inflow but less equity increase, while houses have higher rent-to-purchase-price ratios but higher equity increases and more opportunities to sell.
The Basic Qualities
When you find a potential rental property, ask yourself a few questions about its quality. For example, how old is it? What is the condition of some of the more expensive repairs, like the windows, roof, appliances, and furnace? How much can you expect the property’s equity to increase? Some repairs can automatically set you back anywhere from $5,000 to $15,000, which you will need to factor into your budget and profits.
Private Parking and Other Desirable Amenities
Even if you have hired the best property management company to manage your property and renovated the place from top to bottom, you won’t attract the best tenants or earn premium rates without offering desired or convenient features. Private parking is a major draw for many tenants, as well as a great location, local restaurants and bars and more. When you’re looking for rental property, ask your property companies to help you find to place where you would want to live.
Owning rental property is one of the best ways to make regular profits, but first you have to find the right property, one that will draw in and retain great tenants without needing extensive repairs and work. With the right property management company, you’ll be on your way to a great career as an investor and landlord in no time.