Buying an investment property can be a great way to secure your financial future and acquire an asset that you can leave to future generations. However, you can’t just buy a house and expect to make a profit. Instead, you have to be strategic and look for a property that will attract the type of buyer or tenant that you are looking for.
How Many Bedrooms and Bathrooms Does the Home Have?
A home that has more than two bedrooms and more than one bathroom is generally easier to flip or rent compared to other properties. This is because many people are looking to split their rent as many ways as possible. If someone is planning on buying your property, they will appreciate having an extra bedroom for the kids or to use as an office. Having extra bathrooms is always a plus when it comes to getting ready in the morning or for when guests stop by for the holidays or other special events.
When Was the House Built?
Buying an older home may be a good idea if it has some of its original components, or has some sort of unique backstory to it. However, buying a newer home may be ideal if you are concerned with the amount of work that it may need before renting or selling it. As a general rule, you want to buy a property that has been properly maintained and is in good condition structurally regardless of how old it is.
What Type of Home Are You Looking For?
A single-family home may be ideal for those who are looking to rent to parents with kids or others who plan on staying in the property for awhile. However, buying a duplex or multi-family property may be ideal for those who want to rent to multiple tenants in the same home as this may generate more revenue.
What type of rental are you going to focus on?
Will you be renting this out as a rental home or an Airbnb type property? The area you purchase your investment property in should be one that lends itself to the type of investment you are making. If you’re thinking of using your investment property as a rental home, you’ll want to research properties that are the best fit for this type of rental in your area. If you are considering renting your property out as an Airbnb or a VRBO type property, you’ll want it to be near things that interest people looking to vacation in your area. Many municipalities have restrictions on these uses, do your due diligence.
If you are thinking about buying an investment property, there are many variables to consider before you close on that purchase. Your real estate agent and others on your team can walk you through the process of selecting and buying a property to increase the odds of earning a return on your investment. TeamKuptz would be happy to assist you in your investment property search. Contact us today for a consultation or for more information.