Investing in real estate can be a good way to build a passive income. If you're facing buying your first rental property, you need to know what makes a good rental. The best rentals meet the sweet spot of being in a decent neighborhood that is growing, having a low buying price, and having an appeal to the wide variety of potential renters. Here are some tips that can help you find a good property that won't become a money pit.
Look for Simple Design
Even though transforming historic homes and changing old factories into apartments is all the rage in some cities, it's not a great project to dive into if you're just beginning your rental business. Instead, you want to look for a dependable, solid home that will not cost too much to maintain. This means you should generally avoid very old homes and, instead, look for simple styles of houses that were built in the 50s and 60s. These are usually square with predictable layouts. Their small size usually makes them affordable to heat and cool and have a good starting purchase price. If you're hoping to rent out apartments instead of single family homes, look for a small building with only 4 or 6 units.
Choose Styles That Appeal to Many
Before looking at two story homes or apartments that have two levels, check out homes that are all on one level. One-level homes are the most appealing for the greatest amount of renters. The home would be good for seniors, for people with disabilities, for young families, or for single professionals. They are also easier to move into and maintain.
Other things that appeal to many include feautures like installed air conditioning, a useable kitchen with appliances included, and a place to store things. The storage space could be a basement, a shed, or a garage.
Check for Low Maintenance Feautures
Low maintenance features can save you money down the road. For example, a low-pitch without any gables is simpler to replace when the time comes. Simple vinyl siding does not need to be painted or sealed like other siding types, which can make it easier for landlord purposes. You might prefer to have laminate or carpet squares for flooring for easy replacement, should a tenant stain or ruin a portion of the flooring. Hardwood and wall to wall carpet is easier to damage.
For more information, contact a local real estate agency, such as Mckee Kubasko Group Real Estate.