Although investing in real estate can be a fun endeavor, it is not without a lot of work. And, while you may want to provide living accommodations for those who need it, the reality is that most investors’ number one goal is profitability.
So, with that in mind, what is the best type of rental property to purchase? The answer to that will depend on several key parameters – starting with what your goals, both long- and short-term – are.
That being said, there are some important items to consider as you go about searching for rental real estate property to purchase. One criteria is the location. Just as if you were seeking a personal residence, where your rental property is located can make a big difference.
For instance, the quality of the area you select can have an influence on the type of tenant you will attract, as well as on the vacancy rate of the property. As an example, owning property near a college or university will typically attract students – and because of that, you may find that you need to locate new tenants on a yearly basis.
If, however, you choose to go with real estate property that is closer to an elementary and / or a high school, it is more likely that you will be attracting families – and that you may be able to secure longer-term lease agreements.
Some of the other key factors to consider when seeking investment real estate property can include:
- Crime Rate
- Job Opportunities
- Amenities (such as proximity to shopping, parks, etc.)
- Rent Rate
Finding tenants for any property can take some time and effort. If this is something that you would rather delegate to someone else, then adding a property manager can be beneficial. For more details on how a property management team can help you to leverage your time and effort, contact us today.