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Things to Consider when Purchasing Homes as Rental Properties
Are you thinking about purchasing a home for the
purpose of using it for a rental property? Buying a
home to rent out is a great investment but there are
some things you should consider before you contact
your real estate agent.
Location - When purchasing a home, price is
definitely a factor, but you also need to consider the
neighborhood. When purchasing a home to rent out,
you need to think about the distance to schools and
major freeways as well as neighborhood amenities.
These factors will determine how easy it is for you to
rent out the property. You need to also consider the
crime rate in the neighborhood. Let's face it; no one
wants to live in an area with a high crime rate.
Rental Income - It is important to know what the going rate for rent is in the area in
which you plan to purchase. Look in the local newspaper or online rental listings for
similar homes with the same number of bedrooms and bathrooms. It is crucial that you
are able to profit from the rental home.
Consider Other Fees - Owning a rental home is more than just collecting rent every
month. You need to think about certain fees that come along with owning a rental
property such as HOA fees, insurance, property taxes, repair costs and more.
Mortgage Amount - Since the point of owning a rental property is to make a profit
each month, you need to make sure that your mortgage payment is as low as possible.
There are many things that determine your payment such as your credit score and the
amount of your down payment.
Amy Shair RE/MAX® Real Estate | (919) 469-6539 http://www.amyshair.com
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Have a Plan - Never, ever buy an investment property without a plan in place. Will
you be your own landlord or will you hire a property management company to handle
things for you? What will you do in the event of an emergency? You also need to
consider having a good amount of extra money in savings in the event of an
emergency or in the event that you can't find a tenant for your property.
Know the Risks - You need to know all of the risks of owning rental properties. Some
may include your property sitting empty between renters, legal expenses in the event
of an eviction and repair costs that come with a bad tenant causing damage to your
property. Properly screening potential tenants is incredibly important for the success of
your rental property.
Owning investment properties is a great way to earn extra money every month but you
must know what comes along with it. If you carefully keep up with collecting rent and
maintenance requirements, owning a rental property could be a great long term
investment for you. By taking all of these tips into consideration, the decision to
purchase a rental property should be an easier one.
All Rights Reserved
Amy Shair RE/MAX® Real Estate
51 Kilmayne Dr Ste 100
Cary NC 27511
(919) 469-6539
http://www.amyshair.com
