Purchasing a rental property is a big decision and should be carefully considered. We suggest you review these points in helping you make your decision. For information about the market during the Coronavirus pandemic, contact your trusted Realtor. At Caron B Realty, we understand that it can feel like a confusing time for real estate. We want to ensure you that during our 71 years of combined experience we have seen the market’s ups and downs and know how to respond to every situation. We have taken action to protect the health and safety of our team and clients while continuing to serve our clients at the highest level. We are introducing Zoom for video appointments as well as virtual tours or properties you may be interested in buying.
- Financial preparedness
- Have no major debts
- Be prepared to pay a larger down payment
- Prepare for higher interest rates
- Still want mortgage payment to be low enough so it doesn’t cut too much into rental profits
- Potential rental income taxes
- If you’re buying in an unfamiliar area, learn about the property taxes there and what kind of taxes you’ll have to pay for out of state residency and on rental properties
- What is the market like?
- What is it like for a buyer?
- How are interest rates?
- What are rent prices like?
- Is it a growing area for renters or are people shifting to buying?
- Do I want to manage my own rental?
- Be prepared for the expenses
- Damages, repairs, replacement, and maintenance, just like on your primary residence
- Bad tenants won’t be as likely to help with regular maintenance, so things like appliances may need to be replaced more frequently
- Expected and unexpected vacancies
- Will you pay for any utilities?
- How quickly it will be rented?
- Who will be renting?
- If you rent to students, be prepared for shorter turn-around
- What renters want
- Walkability
- Amenities in the neighborhood
- Good school district
- Low crime rates
- Growing economy
- Who will be renting?
Of course, we always recommend using a Property Management service to ensure the best care and highest results come from your investment. Property Managers can save you costs by ensuring only the best tenants are rented to. We can refer you to trusted vendors for repairs and maintenance. We can help you best estimate your months costs, operating expenses, and returns. Feel free to contact us with any questions or to learn more about or property management services at (808) 593-9826 or concierge@caronb.com