5 Signs of a Great Rental Property investment

Investing in rental property successfully is contingent on several factors. The sum really is equal to all the parts, as everything needs to fall into place for rental property investment to reward investors.  Some rental property investors allow themselves to be frozen by “analysis paralysis” and never get deals done.  So what makes a good rental property, and how can you make sure you see the signs?

What Makes a Good Rental Property?

Although there is no singular definition for what makes a good rental property, there are several indicators that you can use.  Here are several indicators to take into consideration:

• Location
• Cash flow & growth potential
• Property condition
• Property management 
• Property value 
• Market trends

Location

Do not consider investing in a rental property if you are not going to put any thought into where it will be.  It is said that location is the most important factor in acquiring a good real estate deal.  That is why it is great to have a real estate professional by your side that is familiar with the location to offer insight!  There are a number of factors that go into location such as neighborhoods, schools, taxes and crime.  

Cash Flow and Growth Potential

Cash flow is another important factor to consider when investing in a property.  Without creating cash flow a lot of the other factors may not matter as you will have a vacant property that can not be filled.  Having a real estate agent assist you with the process in finding a property that is desirable to live in can be the difference maker.  That will set you up with tenants that are interested in renting your property.  

Property Condition

Property conditions are where most real estate investors sabotage themselves.  New property investors all too frequently underestimate how property conditions can impact their investments.  An experienced agent will be able to help see the value of a property depending on the care it may need!  Just as important is the ongoing property maintenance and costs.  Depending on age, quality of the building, and other factors, knowing how much you will need set aside as a reserve each month and year is important.  How does this compare to other investment property options?  

Property Management 

Perhaps even more important than the property is the management.  Any opportunity is only as good as the execution.  A home that is stuck in a depressed area can still yield a return  with good management.  On the other hand even the best home in the nicest neighborhood may deliver horrific results with poor management.  It is wise to have an ideal property management ahead of an acquisition than scrambling after the fact.  

Property Value 

To keep it short, property value is important.  Of particular importance, is the value of your new property versus how much you are paying for it.  Finding a good income-producing property that will have enough equity to liquidate on your timeline can be a deciding factor.  A real estate agent can assist you in areas that have valuation changes in different areas.  

Contact Vanessa Auguste Today!

If you are looking to invest in a rental property make sure that you contact Vanessa Auguste!  She has plenty of experience and knowledge when it comes to investment properties.  Having someone scour the listings to find a good cash flow piece of real estate can make the difference.  You can contact her directly by giving her a call at 514-788-4444.