Tips for Buying a Rental Property
Owning real estate is one of the best ways to build long-term wealth. While values have fluctuated up and down quite a bit over the past few years, real estate trends still tend to go up in value at a rate higher than that of inflation. While owning your own home is important, a better way to build long-term wealth would be to buy an investment property, such as a rental home. When you do buy a home to rent out, there are many tips for buying a rental property that will help to ensure you make the best choice possible.
Location
The first factor that needs to be considered is the location of the property. The location of the property is far more important than the style and modernization of the home. Since you are looking to rent the property out, it would be a good idea to find a location that would appeal to the largest amount of people. You should look for homes that are located near college campuses, trains and other public transportation options, and shopping districts. All of these areas will be in demand with potential tenants. Cape Coral, Fort Myers and Lehigh Acres all offer some fantastic opportunities for investment property.
Rental Income Potential
The second factor that needs to be considered when you are looking for a rental property to buy is what the potential rental income could be. You should be able to get a good idea of what the rental income will be by researching active rental listings. The amount of rental listings will also give you an idea of how much rental competition there is, which will help you to understand how easy it will be to rent the place out. Once you have an idea of what the rent could be, you should then compare it to what the costs of ownership are to ensure that you will be able to profit on a monthly basis. A Professional Sales Associate at Hamilton-Franklin Realty can sit down with you for a free consultation on any property you would like more information on.
Rental Restrictions
One of the most important factors to consider are whether there are any rental restrictions in the area in which you are looking to buy a rental. Rental restrictions are most commonly found in homes that are located within an association. The restrictions can include excluding and disallowing rentals altogether or requiring the property owner to have all of their rental choices approved by the association. Prior to buying any home, it is important to read the rules and regulations to ensure that you are compliant with the rules regarding rentals.
Feel free to contact a member of Hamilton-Franklin Realty 7 days a week to discuss your wants and needs of your next purchase. Southwest Florida has much to offer both new and seasoned investors. Whether you are looking for a Cape Coral Waterfront Property, a Fort Myers Home off of McGregor Boulevard, a Pool Home in Lehigh Acres or a High Rise Condo in the River District; You are certain to find what you are looking for at www.Hamilton-Franklin.com