Buying real estate to hold

When buying real estate to hold for rent, buying the right property is very important. While generally speaking, it is true that buying in lower income areas may provide a slightly wider spread between your monthly expenses and your rental income ( because you pay less for the property yet rents are typically similar to other areas ). These types of property tend to have a higher tenant turnover. You may have some issues collecting rent and more maintenance costs due to damage. The tenants in these areas typically don’t stay on for multiple year leases and don’t take care of the property in the same way that others might.

Buying in a more desirable neighborhood that is close to work or shopping can give you about the same monthly income but the best benefit is that your tenant will be more likely to stay on for longer terms and take better care of your home. Since the name of the game is cash flow, the best way to ensure you have the highest profit is to 1. Have a desirable home 2. Hire a top notch property management company 3. Get the highest possible rent for your home 4. Make sure the property management company finds the right tenant 5. Have tenants that stay on for multiple years therefore lowering your vacancy rate ( and increasing income ) 6. Having a tenant that takes care of your home as if it were theirs ( lowering expenses ). It is also important as a landlord to make sure the home is maintaned properly and any repairs requested by the tenant are addressed.

If you have any questions or concerns with buying your next investment property fill out the form below and someone will reach out to you right away