INVESTMENT ADVICE: BUYING RENTAL PROPERTIES

Look at the floor plan of the potential property
Consider everything when looking for an investment property. If it's an apartment building/complex or a single family home, consider the amount of steps,  how far the laundry is from each apartment, parking and more. A ranch, split entry or multi-level home would be the easiest to work with as a rental. A home built as a 2 story or 1.5 story may have some tricky ceilings and other features that may make it harder to work with. Remember: the easier the floor plan, the easier it will be to rent. Think of the single parent carrying groceries up the stairs with their children or the older couple coming home.

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Stepping into real estate investments isn't easy. The first thing that you should ask yourself when buying a rental property is will it rent easily? Here is a list of a few more things to think about:

Also, look at the important factor of maintenance
If you are not capable of taking care of the maintenance because of time or some other constraint, you have an option of hiring a private contractor. Before you hire this individual, you should consider getting multiple estimates. The more involved you are with your property the better you will do, so after you choose a contractor stop by when he's working and make sure he's there on time doing the quality work you expect.

Look at the subdivision
Try to buy a property in an area that has many homeowners because usually, the owners will have more pride of ownership in their house and neighborhood. This aspect will only help the value of your property. Also, consider the streets surrounding the property. Are there lots of empty houses or parked cars on the road? Is there a high amount of traffic?

A final word of advice
Start a new checking or savings account to help separate the income you receive from tenants and the expenses you'll accrue for property upkeep. When you have to pay for that leaky pipe or faucet, it will make it easier to pay for when you are taking money out of your business account.

Consider Your Goals
What are your goals? To pay little Johnny's college, make more money each month, pay for your retirement, create a nest egg? Maybe you don't know and that's okay. Although these goals, scenarios and forward thinking can help determine what property may be best for you. One thing you shouldn't do is buy an investment property because you like it! You won't be living there and shouldn't buy it solely on this premise. Take your emotions out of the equation.