Location contributes to the tenants you’ll get. The market you select should grow with the population increase. Good areas command higher rental values, lower vacancy, and better potential increase in appreciation. However, many times means lower cash flow.
Search for the average monthly rent in the neighborhood and subtract your monthly expenses. Include: property taxes and condo, potential vacancies, commissions, insurance, and repairs. If there’s surplus money, it means positive cash flow.
Properties likely to appreciate happens when there are potential market users that would eventually buy from you. They will purchase based on monthly cost rather than price. Make some renovations to the house, this will increase the property value.
Condos or Single-family Homes.
- Condos: The condominium association deals with the external repairs of the condo while you take care of the inmates. The disadvantage is the cost of the condo fees.
- Single-Family Homes: A house usually means larger family tenants with longer-term visions. The downside is having more unpredictable repairs and demands.
Employment opportunities are one of the biggest drivers for home and rentals values. If an important company moves to the area, people will surely move, creating demand. An area linked to multiple industries is attractive. Also, look at the potential future jobs as well.
Views and storage space are some of the top things people look at when on a property search. Details that give a house character can do a lot for long-term and short-term renters. Search properties offering special features like balconies, gardens or amenities that are easy to maintain but create value for tenants.