Investing in real estate has been one of the most exciting ways to build toward the future. With the housing market becoming incredibly competitive and renters and buyers becoming willing to pay more than ever for a home, it’s time to consider investing in rental properties.
How do you decide on a property, though? These are the top features to seek out in any investment home.
Updated Roof
Although a good roof can last anywhere from thirty to over sixty years: it’s important to remember you’ll probably still see tons of homes with roofs needing to be replaced soon. This is an eight to twenty thousand dollar investment you may have to pay if you buy a home with a shabby roof. You might want to look for high-quality slate roofing that looks fantastic and protects your rental properties from a number of threats.
A Price You Can Work With
If you’re planning on buying a home just to flip and sell it, it’s vital you find a property that’s very inexpensive and comes with a lot of options for you to update or change affordably.
If you’re buying this home to use as a rental property, consider how much rental properties of similar sizes are charging per month. The goal should be to have the monthly rent cover the monthly mortgage payment (at least) so you can get the property paid off quickly. If you can’t for the price the home is at right now, you might try negotiating the price down or you could look at other properties.
High-Quality Floors
We experience so much of our life through the floors we’re in contact with. The floors, in turn, can quickly begin to show signs of age and wear and tear. If you have a cheap or accident-prone type of floor, you’ll quickly notice scuffs, scrapes, and cosmetic damage. If you have renters, this will be troublesome since you’ll need to repairs between every renter.
Instead, you might want to go for flooring that can last the test of time, like good vinyl flooring which can handle anything from moisture to sharp heels and mud.
Low Maintenance or Few Updates
If you’re renting out your property, you don’t want a property that will need a ton of work or maintenance calls once people move in. Look for low-project homes or properties built to last with good appliances in them. Although one or two small projects like updating vented soffit panels might be fine, a smart choice is to avoid any homes that have projects so large you have to second guess whether or not they work for you.
When buying, consider how much money you’d have to put into improvements, and then think about how long it would take for them to be paid off just by the rent alone. This will help you plan your financial situation.
Energy-Efficient Features
Energy-efficient features are an important part of any home. Not only is this a great selling point for renters and future home buyers, but it’s also a fantastic chance for you to ensure the property’s HVAC system won’t break the bank later. This gives you the chance to improve the perceived value of your rental properties through items like insulated metal panels while saving yourself money and work in the long term.
A Location That Excites
The location of your income property matters because it defines how much there is to do in the area and if people will be able to indulge in their interests while living there. If you’re flipping a home, this means it’ll appeal to more buyers, and if you’re planning on renting it out, it’ll give you a better chance of finding a high-paying renter who will want to stay there longer – for the location alone. Consider balancing location appeal and price so you can maximize your investment.
Growth in Value
How much has the home’s value gone up in the last ten years? How does that look compared to the rest of the area? You should aim for a property that’s gained a little more value than its neighbors and is intriguing to investors. This will give you the chance to buy a home that will eventually be a great nest egg for you to resell when you’re ready to move along on your investment journey.
Look for Rental Properties that Excite You
Although almost any investment can be a gamble, with proper planning and a good eye for a great deal, you can make an investment that will give you the chance to make money in return. Consider each of these ideas to find your perfect investment property.
Andrea Erickson is a contributor to Innovative Building Materials. She is a blogger and content writer for the real estate industry. Andrea is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that increase property value, maximize energy savings, and turn houses into homes.
Published on May 16, 2022
