When done right, investing in residential real estate can be a great move. Eventually, you could be sitting on properties that are giving you a steady stream of income with little work. Choosing the right residential property for investment purposes takes time but is a worthwhile process in the long run. There are three things to consider when making this important decision.
Location and the housing market in a specific area are the top priorities when choosing your investment property. Consider things such as what school district the property is in. Renters will want to know this information.
The market is usually a seller’s market or a buyer’s market and can vary depending on where the house is located. Speak with a professional you trust to get the most accurate information.
You’ll also need to be aware of whether the property will require a lot of your attention. If so, do you need to live nearby in order to attend to any maintenance or repairs?
These are just a few things to consider when choosing the right residential property for investment.
Rate of Return
The goal is to make money from your real estate investment. Do some calculations according to what you will spend on the property. This includes the initial purchase as well as the upkeep and what you will charge for rent. Be sure to think conservatively by accounting for times when the property could possibly be vacant.
Don’t invest in a property that is paying all your bills, as it could leave you with nothing if there is a slow period with no tenants.
Choose a rental that will show an appreciation in value over time. A market analysis will help determine where the market is currently and will aid in predicting the near future should you have to sell your property.
Managing the Property
As you consider investing in residential real estate, you may also need to consider a property manager. A property manager can handle every need for your rental property, giving you peace of mind and an opportunity to enjoy the fruits of your investment without the headache of dealing with every aspect of the property. For instance, a property manager could handle leases, maintenance, and rent collection.
Excalibur homes is a full-service property management company serving the Metro Atlanta area, including Suwanee property management and many others. Contact us for all your residential needs and questions.