Top Things to Consider When Buying an Investment Rental Property
Even though it is possible for you to make some money from an investment in real estate property, the actual reality is that there is a lot that actually goes into it than simply making a purchase of the first rental property that you may come across. It may be so that you get misled by some of the TV shows on flipping of houses and investing in real estate as these actually may get you a picture that is far from the reality. If at all you are interested in making an investment in real estate property, the following are some of the most important things that you need to take into consideration.
First and foremost, check the condition of the property. You may actually come across a house that sits a fixer upper and as a matter of fact, there is no mistake in making an investment in such properties. However, before you make such an investment, you need to have taken into consideration the money and time it will take you to have these fixed and brought to a new shine.
In your choice of the best real estate property investment to go for, it would as well be important for you to make sure that you have taken into consideration the applicable property taxes. The general rule of thumb to bear in mind when it comes to the need to get the best of the real estate property to invest in is to ensure that they have such low property taxes applied on them for you to have more profits to enjoy out of the investment as the higher the property taxes, the lower the profits and vice versa. Oftentimes it is the case that the real estate properties in the metropolitan areas, town and city centers, will often attract higher rates for property taxes while those in the more rural areas will attract lower rates for the same. Over and above this, it is important that you note the fact that there are some of the areas where the investors will be charged at higher rates for the property taxes than what applies for the owner-occupied properties which makes it a point to consult with your real estate agent and or tax assessor so as to know precisely whether or not this is the case with your chosen investment destination.
Besides this, it is as well important that you take into consideration the neighborhood where your investment in property will be in. Given the fact that you are making an investment and as such want tenants for your property, your location should be such that tenants would want to stay or occupy property in.