Investment

Thinking about purchasing an investment property? Purchasing rental real estate requires knowledge of leasing practices, mortgage loans, tenant and landlord relationships, and property management.

Buying real estate to rent can be lucrative but, like any investment, should be undertaken only after some solid research.

Key Takeaways

  • A hands-on landlord needs a broad array of knowledge, from basic tenant law to how to fix a leaky faucet.
  • If you can’t do it all yourself, consider paying for the services of a property manager or investing in real estate investment trusts (REITs) instead.
  • Full-time rental property investors spend a significant amount of time choosing houses, fixing them up, and managing their properties.
  • Investment rental properties include vacation homes, multi-family homes, single-family homes, and condos.

Buying a Rental Property ?

In order to get started, you’ll need to identify the right property and prepare to get financing to buy it.

Location, Location, Location

  • When choosing a profitable rental property, look for a location with low property taxes, a good school district, and walkable amenities such as restaurants, coffee shops, and parks.
  • A neighborhood that has a low crime rate, easy access to public transportation, and a growing job market signals a larger pool of renters.
  • An area that has a growing population or a revitalization plan underway represents a potential investment opportunity.