As a rental property owner, finding a potential rental house to buy that will provide great affordable housing to renters is just the start to your experience as a landlord. You also need to worry about keeping the property maintained and ensuring the house will bring in a positive cash flow and be a "cash cow" instead of a "money pit". Here are some important considerations to plan for and decide on with a new rental property purchase.
Look at the Property Location
One of the most important features of a home is its location and proximity to local businesses, downtown, shopping, and other important spots. The reason the property's location is so important is that it is one thing that you cannot change. The home's features and benefits can be adjusted to better cater to local renters, but you cannot move a home to another lot.
Take into consideration the property's location to a nearby University, for example, if you plan to rent to students. Or, if you want to have a good market of renters, choose a property that is located in town versus on the outskirts of town or in a rural area. However, if you want to rent to someone who has horses and needs more land, look for a property with acreage and a stable or barn to cater to a tenant's agricultural needs.
Consider Updating and Repairs
A second consideration you should make when searching for a home to buy is any repairs it will need. This can include repairs and updates to make the home a more attractive residence and to also help attract the right type of renter. As an example, if you have a home with a large yard that doesn't have a fence enclosure around the back yard, it may not be as attractive to a family with small children or pets. Adding a fence will add security and create privacy to help attract a renter. A house that does not have a dishwasher may be less attractive to a renter who has a busy life and needs extra convenience with their clean-up. So, you might consider adding a dishwasher to the property's kitchen to boost its features.
You can also look at painting the home interior a neutral color throughout to improve its appearance and tenant-appeal. Look at a neutral color, such as beige or light grey, and paint the trim and baseboards white to keep the home's interior clean and neat in appearance. These touches can update the appearance of the home to help it on the rental market.
Keep these tips in mind as you look at single family home listings to find your next rental property investment.