When it comes to real estate and property management, we always say: location, location, location.
Let me say that again: location, location, location.
It’s one of the most important factors in choosing an investment property, and today, we’re sharing some other things to consider before you buy.
Finding the Best Investment Property
Location really matters when it comes to an investment property. Your risk propensity will dictate what kind of property you buy. If you have a higher risk propensity, you can buy in an area of town with higher turnover and other risk factors. With a lower risk propensity, you may want to buy in a different area. So, location is important.
How to Determine a Good Rental Property
The cost of the property is also something you should keep in mind. When you’re purchasing a property, make sure the cost is low enough that your rent revenue will cover the cost of your mortgage, as well as maintenance and other costs.
Property Management Stanislaus County
Find a low-maintenance property. Low maintenance does not mean making sure the front and backyard get ripped out and replaced with rocks and grass. With all of the recent droughts, people in California have considered low maintenance yards or xeriscape yards. But, we are not in Arizona. Xeriscape properties do not look very attractive, and people want to have some kind of greenery in their yards. So, you want it to be a low maintenance yard, but not xeriscape. Having some sort of yard will add to the value of the home, and it will appreciate rather than depreciate. Tenants don’t necessarily take care of yards with expensive landscaping. So, don’t put too many trees and shrubs that need to be maintained in the yard of a rental property.
Finally, having good tenants makes a property a great investment. Do all your due diligence during the screening process. When you get a good tenant, you earn a higher ROI on your investment. A tenant staying for the long term and paying rent on time every month will make any property an outstanding investment.