Have you considered investing money into a passive rental for additional income but not sure where to start? This blog post is a peek into how I choose properties to invest in. The number one thing to remember is that picking a passive rental different than choosing a home for yourself to live in. When it comes to investing in a passive rental, it is all about numbers and not about falling in love with the property. Though the analysis is complex, I have broken my strategy down into four key components for simplicity.
Location is key in any real estate investment. For single family passive rentals, this is specifically important in finding tenants quickly and also for retaining tenants which in turn is helpful in reducing the vacancy rates. I look at these specific elements:
a. Access to public transport and expressways
Note that if public transport isn't available and expressway proximity is what you're considering, ease of parking becomes a factor as well.
Investors often consider skipping a home inspection when purchasing a property in need of a rehab. I’m here to argue otherwise. Home inspection for investment properties can save a great deal of money – which is good way to start an investment.
There are a lot of things to consider when choosing an investment property. With the multitude of aspects to keep in mind, there are certain hidden damages in properties that are easily overlooked by an investor. Upcoming mechanical failures, problems inside crawl spaces or behind siding, roofing, and certain structural damages are examples of valuable information that may not be so obvious to an investor. If not found early on, these can easily change the return on investment for a property. A seasoned home inspector can catch these items.
Knowing that a home inspection can have immense value to the investment, what are some key things to consider? I’ve compiled a few tips to help you.
1. Work with reputable...