An investment in a single-family home is a great way to earn passive income. However, not every investment yields a return. Choosing the right property for your goals is the most surefire way to turn your investment into cash. Discover some things you should look for and consider when purchasing a single-family home for investment purposes.
Research the trend in any neighborhood you are considering a purchase in. The neighborhood trend is simply a reference to what side of the aisle most of the residents are on — are they coming or going? If you see a house in a neighborhood where the trend shows that more people are moving to the area, it's a good sign.
However, if most of the people are leaving, this could be a warning that there is something about the area that is causing people to run away, be it crime or a lack of nearby amenities. Consequently, it will also likely be hard for you to keep a tenant in the property.
When you invest in a property, you have to think about the true cost of ownership in the same way you would if you were purchasing a home to live in. In terms of ownership, the biggest cost to consider is maintenance and how much you can afford. Consider a home with an array of smart-home features, for instance.
Sure, the technology is awesome and a great selling point, but you have to remember that if any of these systems fail while you have a tenant in the property, it's your duty to repair them. If you don't have a lot of money leftover in your budget for repairs and maintenance, you should look at a property that will be more economical to maintain.
Make sure you first know what type of tenant you want to attract with your property. A single-family home can accommodate families with children of all ages and all sizes, and it can even accommodate single people or a group of college students. It's important to pinpoint who you'd like to market the property to so that you can select a home that appeals to this group.
For instance, if you want to focus on local college students, a single-family home with more than one en-suite or a Jack and Jill bathroom would be a better choice.
If you need assistance in finding a property, a real estate professional can help you. Real estate professionals are not just for people looking to purchase a home to live in themselves. Collect your list of things you want and need in the property, and the person you're working with will take over from there.Share