Have you ever thought about buying rental property? This can be a great investment if you know what you’re doing, but it can present a steep learning curve if you don’t. Although there’s a lot to learn about how to purchase the right rental property and how to make it work for you, there are several tips you can keep in mind when you’re first considering getting into this business. Check out our list below to help you decide if rental property is the right investment for you.
Research Neighborhoods: When it comes down to it, purchasing a rental property in a better neighborhood is sure to be a sound investment. If you buy property in a neighborhood that’s a little uncertain, you run the risk of losing money over time, especially if the area doesn’t improve or build up over the years. Choose a neighborhood that has a lot of great schools and you’re sure to have no trouble keeping your property rented. For example, rental properties around the popular Notre Dame Preparatory private high school are sure to stay rented at all times, as families hope for their children to attend this well-known school.
Research Rent: Keep an eye on how much comparable properties rent for in the area you’re interested in. You can’t expect to rent a two-bedroom apartment for the same price as a four-bedroom house, for example, if both are in the same part of town. Always be sure you’re keeping your prices reasonable and competitive without going too far over what’s common for your area or so far under that you’re not making any money.
Look for Areas with Lots of Benefits: Although the neighborhood and its schools are a good place to get started picking your rental property, you may also want to consider the other benefits in the area. Rental properties that are close to some of the most popular restaurants in and around Scottsdale, like Café Monarch or the popular locally-sourced restaurant, FnB, are sure to rent faster than those that have fewer popular eateries nearby. Properties that are close to Old Town or downtown Scottsdale may also rent faster too, since they may be within walking or biking distance to some of the most popular area attractions.
Keep your Budget in Mind: You can’t buy a rental property you don’t have the money or financing available for, so always keep your budget in mind when you’re getting started in this endeavor. Think about how much you have to spend up front and how much you need to make over a given amount of time to make sure this investment is well worth it. Pay attention to the housing market in Scottsdale to keep up with your competition, too.