If you are planning to buy a rental property to grow your investment portfolio; there are a few things you need to first consider:
- Is the neighbourhood safe? What kind of shops and supermarkets do you find around the home?
- How often do the neighbours suffer from vandalism or other petty crimes that may affect the value of your property?
- What sort of schools do you find in the nearby locale? You may rent your home to families with children. Such families will value their children’s education above all else.
- Is there a park, restaurant, golf court, or community swimming pool near the property? Such amenities can help attract the renter’s attention.
- If other properties near your property are currently under development, it is a sign that the value of your property will rise in the next few years significantly. However, make sure that such properties do not block the view your tenants will see.
- Take a look at how many other homes in your locale are vacant. If the number of vacant houses in the areas surrounding your home is high, your property may begin to devalue soon.
- Ask the neighbours about the average rent in the area. You need to make sure that the rent you receive from your tenants is enough to pay the mortgage payments.
- Find out if there are any employment opportunities in the area near your property. Most people choose to have their homes near their workplace, so it may be difficult to find tenants if employment opportunities are limited in the area.
Evaluate all these factors in buying your rental property. If you are planning to buy a rental property and need to acquire a rental property loan, call Red Door Funding on 832-539-1099.