Most individuals, when they shop for a home, are searching for a home to call their own. A primary residence is the main reason that individuals buy real estate. However, real estates has almost always been a great long-term investment in order to make regular, sustainable money from renting while also gaining equity simply by owning the property. But what does it take to find the perfect investment property? If you’re looking for a place to invest your money, diversify your assets, or simply think it’s a great idea to own a rental home, keep reading to pick up a few tips and tricks in order to select the perfect rental property to invest in.
Put Yourself in a Renter’s Shoes
One of the best things you can do is to put yourself in the renter’s shoes and think like a renter. If you were buying a home for your primary residence, you will probably be looking for your specific needs and even imagining your own belongings in the home. While you should still look for quality in a rental property, such as having good windows or a well-maintained furnace, you’re not going to be imagining yourself in the home. Ask yourself questions like, are the spaces functional? Does this home provide versatility for a wide variety of individuals? From the surface, would you want to call the property home? Thinking about a wide variety of individuals and placing yourself in the perspective of the renter makes it easier to make the best decision concerning your investment.
Don’t Go High-End
While you want to please future renters, you also have to keep in mind that it’s your money you’re investing. Because of this, you want to consider the level of quality in the home. You don’t necessarily want all stainless steel appliances and top-of-the-line flooring. Opting for a home that provides quality, but in the mid-range, is one of your best bets. Additionally, you don’t want to choose a massive home. Most renters are young couples or families, and often, they can’t afford rent on a five bedroom, three car garage home. Instead, look for properties with two to three bedrooms, two bathrooms, and something with appropriate square footage.
Basements are Your Enemy
While you may be looking at real estate and thinking about some of the things that you would want, try and keep those thoughts in check. There are certain things that would be wonderful in a primary residence, however, as a property manager you may end up cursing the day you ever thought they were a good idea. One of these features is a basement. When you own a home, it’s great for storage, renovation, or simply just to make maintaining your furnace easier. But as a property manager, basements quickly become a nightmare. From water backups to renter hoarding, basements are the one place you will hate cleaning any time you have a change in renters.
Another one of these features you want to be careful of is landscaping. While those flowers and bushes may look beautiful now, it’s important to think about ease of maintenance and making sure all the landscaping surrounding the house can easily be maintained by renters.
Don’t Dismiss Foreclosures
Perhaps you’re an individual who is hesitant to place an offer on a foreclosure or a short sale when you look for a new home for your own family. But don’t underestimate the deals you can find if you’re willing to watch for just the right foreclosure to come along. When you’re searching for an investment property, you’re under no pressure to buy under a specific time frame or align the purchase with the sale of your current home. You have the ability to wait in order to find the right property in just the right location to make sure that you will get the most for your money. However, the one downside to a foreclosure is, more often than not, you’ll have to put some money into fixing up the house before it’s ready to be rented. The overall costs, though, are still worth it.
If you’re interested in buying property to invest in, let Berkshire Hathaway HomeServices help you find the perfect fit. Our experienced real estate agents know the Santa Fe area well and can help you get the most out of your investment. Call today to schedule a meeting and get started!