Investing in a rental property is a really great way to make some extra money without really having to work too hard for it. Imagine owning a property, renting it out, and receiving rental income each month from one or more tenants.
Regardless of where you are planning on purchasing your rental property, whether it will be in the middle of a city or within a quaint suburban neighborhood, there are steps you should follow to ensure you purchase a property that will be profitable. Keep reading to learn more.
Hire a Realtor to Find the Best Properties
Rather than going about your real estate search completely on your own, it is a good idea to hire a real estate agent from a group like HomesATX Realtors in Austin. In this way, you can let the realtor know exactly what you are looking for in your rental property, and you will not need to waste any time looking through listings. This will also ensure that you can see a new rental property as soon as it hits the market, and you can gain valuable insight into what properties have been most profitable as rental properties in the past.
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Consider the Property Taxes
Property taxes vary widely depending upon the location and value of a property, but these taxes are something that you will be responsible for and that will, therefore, affect your bottom line. When looking at a property, if the property taxes are too high, you should take this into consideration in order to determine exactly how much of a profit you can make from your rental.
Research the Crime Rate of an Area
Another thing you should consider when searching for your first rental property is the crime rate of the area. Tenants will not be attracted to a property in an area that has a high crime rate, or a property that is located very close to a high crime neighborhood. With the help of your realtor and a bit of your own research, you can see if there has been a lot of criminal activity in a particular neighborhood and if the crime rate has gone up or down recently.
Look Into the Area’s Amenities and Schools
To attract the highest number of tenants possible, your rental property should be in an area with a great school system and many amenities. This is especially important if you are hoping to attract families. If the local schools have a good reputation, parents will be willing to move to the area and send their kids to school there. And if there are also restaurants, theaters, parks, and other fun things to do within the community, it is more likely that you will find the ideal tenants.
By keeping the tips above in mind, you will be able to locate and purchase a rental property that fulfills all of your needs and expectations. You will be able to attract tenants more easily and quickly, and you’ll be able to earn great returns on your investment.
