We may not agree with many of the policies that are being placed upon us, but one thing is for sure, Benton and Franklin Counties w... Read More
Finding the Right Rental Property
Deciding to get involved with investing in a rental property is an important decision and finding the right property for your efforts can make the difference between a profitable, successful career in rental properties and a discouraging experience that leaves you unwilling to continue on. No matter if you are looking at a rental property purchase for the first time or the 50th time, there are some key things to consider when searching out a good deal in real estate.
More Than Just the Rent
Money plays into your investment in a variety of ways, making an impact beyond simply what kind of rent payments you will be receiving. Knowing what kind of cash flow will be available through rent payments is important, but so is knowing what kind of cash you are going to put up for needed improvements or routine maintenance to the building. Whoever is selling the rental property is doing so for a reason, so make sure that high maintenance costs isn’t one of them.
The value of surrounding real estate, rental or not, can influence the kind of activity you receive at your rental property. In areas of expensive homes, rental properties will often pull in higher rental amounts even if the property isn’t up to those standards. Consumers that have their heart set on a particular piece of real estate may turn to renting in the face of expensive home prices that would yield unaffordable mortgage payments.
Other rental properties in the area of course also play in to your cash flow situation and purchasing a rental property operating with rent payments below what the area is worth are great targets. Sometimes rental property owners get set in their ways with rent and avoid raising rent so as not to scare off customers. Knowing that you can later raise a rent after purchasing a rental property is a great way to get an early jump on profitability.
Who Are You Buying From?
Understanding why someone is selling a rental property will go a long way towards understanding whether or not it is a good investment. Property owners that live far from their rental properties often get fed up with managing a property so far away and sell out of convenience. These types of sellers offer great opportunities as they are often more willing to deal in order to be rid of the obligation that they have grown tired of.
Additionally, the history of the property often reflects the history of the property owner. If you are dealing with a stable seller with a history of good rental ownership, it is probably that the property has been kept up to date with adequate repairs and improvements when necessary. Ask for all improvement records available on the property to look for a history of care taken with the property. Those that have been taken care of well will be less likely to cause headaches later.
What Does the Code Say?
Older buildings are more likely to have issues with building and fire codes. Do research not only into the age of a particular property but also into the history of updates done in regards to building and fire codes. Has anyone ever been out to inspect the property to ensure that is up to code with various local statutes? As soon as you sign on the dotted line, those obligations become yours so investigating just what issues may arise will save you from uncovering code surprises down the road.
Rental properties can be fulfilling, profitable investment opportunities, but selecting the right rental property for you is perhaps the most important step of the process. Protect yourself by asking some key questions about the property and its owner and you will avoid the pitfalls that beset many real estate investors out there.
Call us, 509.438.9344, Email us, or fill out the contact form below.
We respond right away! -Colleen Lane, Realtor®
Latest From Our Blog...
Open House (Virtual): 483 Aimee Drive, Richland WA 99352 This virtual open house is best viewed on a full screen on a larg... Read More
Women of Washington Wine | The Walter Clore Center | Prosser, WA | Aug. 22, 2020 | The Walter Clore Center | 6:... Read More
Are you looking for something to do this weekend in the Tri-Cities Washington or in the surrounding area? Then check this out! We h... Read More
We will update the 2020 2021 Benton Franklin Fair and Rodeo information as we receive it: The 2020 Benton Franklin Fair and Rode... Read More
From this year's 2020 Columbia Cup Hydroplane Races on the Columbia River about next year's 2021 Columbia Cup Hydroplane Races on t... Read More
Not sure what is going on with Second Saturday Uptown Shopping Center Art Walk in Richland given the current Covid-19 climate,... Read More
Apparently the 2020 70th Annual Art In The Park at Howard Amon Park, Richland WA is still on. From their website: We a... Read More
What is going on with this year's 2020 Riverfest? Not sure what else to post except that our family will miss it if Covid-19 has it... Read More
Not sure what is happening with the Women Work Art Show, but hopefully there will be one this year. Stay tuned... Last yea... Read More