It’s widely believed that 90% of wealthy individuals are involved in real estate. One way to start is by purchasing a single-family home, which can provide you with a steady monthly income.
One of the essential factors that you should consider when investing in real estate is the potential for higher cash flow. This can be achieved by purchasing a property with a property management company. Before investing in real estate, it’s vital that you thoroughly research the market. There are eight key areas that you should look for in a property.
A Good Community
A good location is also important when it comes to investing in real estate. It can make a massive difference in the desirability of a home. For instance, if a home is only a half-mile from a sewage treatment plant, it might not be considered a desirable location. Having a strong realtor can also help you find the perfect rental property. In addition to these, you should also be aware of the various permits and business fees that come with living in a community.
Taxes
If you’re considering buying a home with high property taxes, it’s important that you thoroughly understand the deal’s details. Since property taxes can vary significantly from one area to another, you must know how they affect your net operating income.
Crime
Besides property taxes, local crime can also affect the rent. If renters can afford to live in a low-crime area, why would they not? Having a steady supply of tenants can help you avoid experiencing turnover. Unfortunately, high crime can also impact the satisfaction of your renters.
Local Business
Before you start looking for a rental property, it’s important that you thoroughly research the area and its surrounding areas to see what services and retailers are available nearby. Doing so can help you identify potential tenants interested in living in the area.
Activities
Looking into activities and attractions nearby can be helpful as well. These things can include a movie theater, clubs, beaches, and an amusement park. Families looking to move will want to live somewhere close to things available for children.
The Future
It’s also important to consider the community’s vision. Whether the streets are being revitalized or are businesses moving to other areas, this can affect the property’s value.
Vacancy Rate
If you’re looking for a rental property with a low vacancy rate, then having a good realtor can help you find the perfect rental property. If the vacancy rate is at 10% or higher, you might have a hard time finding enough money to cover your mortgage and taxes. Having a low vacancy rate can also help you avoid hiring someone to manage the property.
Rent
Looking at the average rent at other properties in the community can give you a good idea of whether you should invest or not.
If you are looking to invest in real estate, MBANC can assist you with a mortgage for a rental property.