Buy and hold real estate is one of the smartest investment opportunities of 2014. Both home prices and rental prices are on the rise around the country, and many people who are able to buy are instead choosing to rent due to low home affordability and the ever-lessening stigma on renting. One of the most important factors in ensuring that your buy and hold real estate investment is profitable is ensuring that it will be desirable to renters in your area.
So, what can you do to choose the property that locals will want to rent? Here are a few factors that you should consider:
1. Know your market
If you’re looking for a rental real estate investing opportunity in a college neighborhood, your future tenants will most likely want to be able to walk to restaurants, bars, and potentially their classes. If you’re looking in an area dominated by retirees, things like nearby golf courses and a safe environment will probably be more important. Whenever you purchase any sort of investment property, it’s vital to understand the type of person who will be most likely to buy your home. Make sure to choose a property that has appeal not just for the general public but for the specific inhabitants of your area.
2. Make sure the insides match the outsides
Do what you can to ensure that the interior of the home also appeals to your most likely renters. For example, luxury fixtures that significantly bump up the price of the home may be a deterrent in an area dominated by low income families. You need to know your market before you can sell to it.
2. Don’t overlook young families
The rental group that is growing the fastest right now is young families. People in their late 20s and early 30s who are just starting to have children are also the people who were most likely to be burned in the recent housing crisis. Many young families are finding it more flexible and affordable to rent than buy. Consider neighborhoods where families are settling down, and consider factors that are important to young parents, like good school districts, a low crime rate, and proximity to amenities like grocery stores and parks.
For more insights into rental investing, contact ZINC Financial today. At this time, we’re offering rates as low as 7.49% on our rental real estate financing programs as well as other great terms. To learn more, give our team a call at (888) 552-6637.