Before you start investing in a Williamsburg rental property, it’s important for you to get a good idea of what to look for in a property, especially if you want a return on investment. Other single-family houses make better rental properties than others. You can make use of the specific qualities of investment properties to identify which properties have profit potential. If you’ve found a property that has these qualities, that property is certainly a great investment.
One quality you need to look for in a rental property is its location in a market. For the most part, profitable rental homes are found where there is a demand for rental houses — in growing real estate markets. The location of the property will also define details like your tenant pool and rental strategy.
Other details to look for are a strong local job market, low crime rates, and future development plans. Also, get as many details as you can about nearby amenities, public transportation, and features of the property that might be trendy or in demand. To maximize the return on your investment, it’s wise to understand the ebb and flow of the local market before buying anything.
With a property location comes the price. Make sure you find a rental property that doesn’t go beyond your budget and is priced at or below market rate. When calculating the property price, don’t forget to include things like closing costs, repairs, and insurance. When you’ve found a truly affordable rental property, you’ll know because you can pay for it and still have cash reserves left to spare.
The lowest-priced property, though, isn’t automatically the best value. If the property is priced well below comparable properties in the area, you might want to find out why first. It’s likely that you’ve found yourself a great bargain and instant equity!
Cash flow is another thing you need to be mindful of when choosing a rental property. An excellent rental property will continuously provide a strong positive cash flow. Simply put, you should earn a profit beyond your monthly property expenses. You’ll need to do a rental property analysis to assess whether a property will provide positive cash flow. Property-related expenses should always be noted, especially those that are often missed. If, after all the calculations, you still end up with a positive cash flow, you have a good rental property.
Part of calculating your numbers will undoubtedly include the cost of any repairs and maintenance. All single-family houses require regular maintenance and repairs. Nevertheless, don’t be careless; there are shady sellers that might not reveal any major issues that might cost you resources and time. If you don’t reside in close proximity to your rental property or don’t have experience with home remodeling and repair, be sure to include property management costs in your calculation.
Even though it seems alluring to try and control your own investment property, it is more practical to hire a professional property management company, such as Real Property Management Dominion, to do it for you, especially if it’s your first time to do anything like it. Examine all the details and do your due diligence, especially with monthly fees and other costs. Don’t forget to add these to your budget.
Use these qualities to your advantage by allowing them to aid in your analysis of which properties make for good investments.
Do you have your next rental home already? If so, make sure you get a good manager! Real Property Management Dominion is here to help! Contact us online or give us a call at 757-395-4274.
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