When you see an affordable home on the market that you want to rent out to make money, you need to make sure you choose the best property for your needs. Here are things to look for when shopping for a rental home.
Rent amount can be just as much dependent on where a rental is located as how large or small the home itself is. If you want to buy a rental that can give you a competitive amount of rent every month, then it's best to purchase a home in a quiet subdivision, near local parks or schools, or in the city. If you just want a cheaper home that can acquire a small income every month in rent, then purchase a home in a traditional neighborhood or out in the country.
A smaller one or two bedroom home with a single bathroom will likely net less rent per month than a home that has more bedrooms and additional bathrooms. Think about the type of renter you want, as a single individual may not be willing to pay a lot for a larger home while a family may be willing to pay a higher rent to be in a house that can accommodate their brood.
The size of the home you buy can largely affect its selling price as well. If you don't have a larger budget, you should shop for a smaller home with less square footage, or a larger home that has a few touch-ups required to make it rent-worthy. A realtor can help you find real estate within your price range that will meet your needs for rental income in the future.
The newer the home, the more modern amenities it is likely to have, making it appealing to renters who want a cozy place to call home. While you may pay more for a newer property, you can often make up the difference in the amount of rent you can ask of your renters.
If you choose to buy an older home due to your budget, look for homes that don't need a lot of updates to make them attractive rentals. An older home with newer carpeting or an updated kitchen can be cost-effective while still allowing you to get a great return in rent. If you are in the mood for a fixer-upper, you can purchase one and fix it up so it meets your needs best.Share