Here are a few more tips that can help you find the perfect rental property for your investment portfolio:
Use online property finders
Looking for real estate property now is easier than ever. With just a few clicks, you can browse through hundreds of real estate properties advertised online. Websites like Realtor.com use analytics to help you evaluate investment opportunities you come across. This ensures you get important real estate metrics that you can use to help determine the profitability of an investment property.
Evaluate the neighborhood
Finding as much information as you can about the neighborhood the property is in can help you gauge the value of the property itself. A quick drive around town can also give you a general feel of how the area is like.
You will want to know how safe the neighborhood is for your tenants and your property. You will also want to aim for an area that is just picking up steam. Employment rates and population growth are good indicators of a healthy housing market. Other barometers include low property taxes, a good school district, a fair amount of recreational opportunities, and enough amenities to make tenants happy.
Compare two or more properties
Identifying rental comps (or real estate comparables) can help you figure out the average rental price per square foot of the property. Compare your numbers with three other properties that are similar in size and condition. Using the rental data, you can calculate the average price per square foot for rental comps.
Secure your financing
Just like other real estate property, you’ll need a 20% down payment on a rental investment. You’ll also need to pay down personal debts like student loans or rethink your purchase if you face imminent or current expenditures like paying for your child’s college tuition. Experts say it’s important to have lots of spare cash to cover the expenses that come with buying a rental property.
Get educated
Finding great real estate property to add to your investment portfolio is a skill. As with all other skills, it takes practice to get you to a place of confidence and in-depth knowledge. We advise you to read up on the many different approaches practiced by industry experts. Join related forums and webinars. Subscribe to industry newsletters and keep abreast of market developments. All will help you form your own unique strategies. In addition, you may want to consider partnering with a more experienced investor.
Purchasing real estate properties can be very risky, but with enough preparation and education, you can increase your chances of enjoying the passive income that comes with your investment.
If you are looking for Eden, Utah rentals to invest in, along with opportunities in the surrounding areas, get in touch with us, the Destination Properties Utah team. We have represented buyers and sellers in Northern Utah for more than 25 years. We also offer property management services for your rentals. Call 801.745.2009 or email info(at)destinationproperties(dotted)com today.