Is the landlord life for you? The dream of many is to invest in homes, condos, and buildings to buy and rent out – making the most of your investment could be tricky.
The folks at Realtor.com have done some digging and found a few ways to help hone in on a cash accumulating rent house.
Turn-Key Properties are Key
One major mistake of investors is judging a property based on the rent they could collect after making tons of renovations, which is a mistake. Plan, instead, on making your income cover the costs of the house.
Days on the Market
The number of days a property and comparable properties is for sale can tell you a lot about a neighborhood (usually the fewer days on the market, the better). If places are going fast, you could be in line to make money on the rental or resale of the property.
Area Amenities
High-end grocery chains like Whole Foods and Trader Joe’s, or a Starbucks beside a bus stop and public park make for a more desirable location that renters might pay more for, so it’s something you’ll want to keep in mind during your property search.
No Reckless Renters
Running a background and credit check on a tenant, whether inherited or someone you’ve found through the classified ads, is a must. Also, ask for proof of income so you know if renting from you is even viable.
Source: http://www.realtor.com/advice/buy/signs-good-investment-property/