Buying a home for your family is one thing, but purchasing real estate that you plan to rent out and use as an investment property is something entirely different. As a result, the shopping and buying process should also be different. If you have plans to jump into the realm of real estate investing, learn some buying tips that can help you along the way.
1. Factor in Your Current Expenses
As you browse the market for available properties, make sure you factor in your current expenses. You should never look at rental property as a stand-alone responsibility. In the event you are unable to find a renter right away or you have a tenant lapse, you will need to cover your current expenses as well as the property's costs.
Aim to look for a property that you can afford, even when you do not have a renter in the property. A realtor can help you find a property within your price range.
2. Think About Your Future Renters
Take the time to think about the people that will rent the property and what sort of renter you would like to attract. To boost your chance of finding renters and avoiding vacancies, the property you purchase should meet the needs of the renter.
For example, if you want to invest in a property targeted toward families, a home with a nice-size backyard, plenty of gathering space in the kitchen and family room, and a location in a great school district are some of the features you want to look for. Whatever the demographic you plan to target, choose a property that will align with what they are looking for.
3. Research Rental Comps
Whenever you are looking for a property to purchase as an investment, you want to be certain that you can recoup at least the cost of your mortgage. To be sure you can do so, it is a good idea to have your real estate agent research rental comps in the area of any property you are considering.
This step is important because the agent will be able to collect data about what other properties in the area are being rented so that you can get an estimate on how much you will be able to charge for the property.
Once you have your plans in place, a real estate professional can help you find a rental property to meet your needs. For more information on real estate for sale, contact a real estate agent.