The real estate market is booming, and this year has been a once-in-a-lifetime opportunity for real estate investors. The pandemic-driven remote work culture has given homeowners the freedom to move to places with lower housing costs, further broadening the market for residential real estate investors. With this opportune time for investors, it’s important to know what to look for when hunting for the right residential real estate investment property.
Location, location, location. We’ve all heard the saying, and this is especially true in an investment property. If you’re purchasing a property with the goal of renting it to tenants, consider the type of potential tenants. For example, if you purchase in a college town, then your tenants will likely be college students. This means that summertime might be a high vacancy time for your property.
When searching for the right investment property, it’s important to consider the nearby points of interest. One important factor when scoping out the nearby points of interest are the schools zoned for the neighborhood. Whether you have children or not, being close to quality schools is something many buyers consider when house hunting, and this will increase your chances for resale. Also, consider the grocery stores, malls, parks and restaurants. Most people enjoy the convenience of living near the places they frequent on a daily or weekly basis. Investing in a home near desirable points of interest will entice future buyers, making your place a smart investment.
As a landlord, rental income is where you’ll make the return on your real estate investment. Before purchasing your residential property, look into the area’s average rent. You’ll want to make sure that the rent will cover your mortgage, taxes and other expenses. Also, research to find if the area is growing, what the average income is and what home features might be needed to attract renters.
As you’re striving to check all the boxes as you search for a good residential real estate investment, don’t forget that the house itself must be heavily considered! Houses are always an investment, and this one is no different. You will need curb appeal, updated fixtures and spacious and open floor plans. Don’t forget that neutral staging and décor can help potential renters see themselves in the home and decide to move on in!
Finding the right residential real estate property to invest in is a big choice, but one that can be rewarding and bring a big return over the years