According to the Pew Research Center, there are about 20 million rental properties situated throughout the country as of 2022. If you would like to make a rental property investment, you should be able to find one that you can use to turn a profit.
But before you begin shopping around for rental property investments, there are some things you should know. It’ll help you track down the right rental property out of all the rental properties that exist in your area.
If you’re ready to begin investing in property, continue reading to learn about three of the most important things you’ll need to know about investment properties.
1. Is a Rental Property in a Desirable Location?
Prior to purchasing a rental property investment, you’ll want to make sure that it’s located in a place that will make it desirable to people. Otherwise, you might find that you’ll have a difficult time renting it out.
You should look at both the rental property itself and the area that surrounds it. This should tell you a lot about whether or not it’s going to sit on the open market for long stretches or be rented out all the time.
2. How Much Could You Potentially Charge for a Rental Property?
In addition to considering if a rental property is desirable, you should also attempt to calculate how much you might be able to get for it. This will let you know if a rental property investment is going to be worth the price you’ll pay for it.
Ideally, you’ll want to try to get your hands on a property investment that you can buy for relatively cheap and rent out for a pretty penny. It’ll enable you to maximize your profits on it every month.
3. What Will Property Taxes on a Rental Property Cost?
There are going to be some costs that will come along with owning a rental property. For instance, you’re going to need to pay property taxes on it.
The property taxes that you’ll pay on a rental property will be based on a real property valuation. You should try to gauge how much property taxes will cost you before you settle on buying a rental property investment.
You should also factor things like utilities and maintenance into the equation. All of these things will have an impact on how much you can make on a rental property.
Start Searching for a Rental Property Investment Today
As long as you get to know a rental property investment inside and out before buying it, you should be able to put yourself in a pretty good position to make money with it. But you’ll need to do your homework on a rental property first.
Think about each of the things we’ve talked about here when you’re in the market for a rental property investment. It’ll increase your chances of you being able to locate a rental property that you love.
Get more real estate investing tips and tricks by reading through more of our blog articles.