Finding the best property and renting it out is probably one of the easiest ways to earn passive income. With a rental property, you can basically earn money even when you’re a full-time employee or parent. However, before you can achieve this goal, you should be careful in selecting a property. The property you end up choosing can make or break your success as a real estate investor.
Picking the right property can be challenging, especially for newbies, but it can always be done. Here are some tips from Syracuse real estate agents to help you out:
1. Ask Help For From Professionals In The Industry
Because of the number of options to choose from, the decision of selecting which property to invest in can be overwhelming and stressful. This is especially true for neophytes who have zero background in the real estate industry. If you’re one of them, ask for help from professionals. This can mean tapping the help of large companies or using reliable sources such as www.cnyrealtor.com as your guide.
If you know people who have started investing in real estate, ask for their advice as well. Since these people already have firsthand experience in real estate investing, they are the best persons to ask when it comes to choosing the right property.
2. Choose The Right Neighborhood Based On Your Financial Goals And Expectations
Different investors will have different financial goals. While some want to invest in real estate in order to have a steady source of income, others are taking this direction as a way to prepare for bigger purchases in the future. Keep your financial goals and expectations in mind when choosing a property to buy.
Choosing a property that is accessible to universities might yield a high demand for rental properties, but as a landlord, you have to deal with high turnover rates of the tenants. The end of a school year can usually mean that your tenants will have to leave your property. Stable tenants who will stay in your property for at least a year can provide better income, but finding them can be a struggle. More often than not, older tenants can also become problematic.
3. Think About All Of The Costs Involved In Choosing A Property
As mentioned, people will have different motivations for investing in real estate, but for sure, one of these will always include the desire to earn. The amount and period might vary, but all investors want to earn from real estate. For you to achieve this goal, don’t forget about the costs involved when choosing a property.
Aside from the cost of the property you’re eyeing to buy, take the time to know more about the additional expenses required from you. You might need to pay municipal rates (which differ from one place to another) and service delivery costs. These expenses should be taken into account since a rental property will always require maintenance.
4. Take The Time To Investigate The Crime Rate Of The Area
For you to choose the best property, think like a tenant or buyer. Aside from the location, the crime rate of the area is something that you should greatly consider. Is the neighborhood safe from any type of criminal activities? Are the neighbors associated with crimes? Can your children play safely on the streets?
Human beings are naturally conscious about their safety, and no one in their right mind would want to live in a dangerous or crime-prone area. No matter how cheap your rates are, if your area is a hot spot for criminal activities, don’t expect that you can earn money from your investment.
Make small talk with the people living in the area and drop by the nearest local police stations. Visit the area at different times of the day to assess which activities the neighborhood engages in.
5. Research Rental Rates In The Area
Tenants are the lifeblood of your real estate investment. Without them, you’ll never enjoy any return on investment. If you don’t have any tenants, you can end up experiencing debt and even bankruptcy. To prevent this from happening, research the rental rates of the area. This is especially important if you’re eyeing to invest in a new or unfamiliar location. You wouldn’t want to invest in an expensive property and later on find out that your rental fees are too expensive for the locals.
Knowledge Is Power
After choosing the right property, exert time and effort to know more about the real estate industry. Check what your competitors are doing and what your target audience wants in a property. The more informed you are, the faster you can become a successful investor!