As a real estate investor, you’ve probably heard it a thousand times before, but it bears repeating again – the three most important criteria when purchasing real estate are location, location, and location.
The question here is, though, what really makes for a good location when searching for a good rental property?
The answer is that there are actually a couple of factors – and these will depend primarily on what type of property you are seeking, as well as what your overall real estate investing goals are.
First, in any case, you should seek out a property that is in a good area of town. But, what exactly does that mean? It means that at any given time, there are areas of the city (and metro area) that are in decline, and areas that are up and coming. And, there are several things that factor into whether an area is in an upswing or in a decline. Some of these can include:
- Employment – Are there lots of shops, restaurants, and other companies and employment opportunities moving into the area, or are they moving out – and also causing many of the residents to move out, too.
- New Infrastructure – Are there any new construction projects going on such as homes being built, or is new building at a standstill?
- Crime Rate – Is the crime rate in the area rising or is it falling?
It is important for you to weigh all of these factors into your purchase decision, and aim to invest in an area that is appreciating. This will help your overall real estate value to appreciate, as well, once you have purchased.
Sometimes, investors feel that they must buy in bad neighborhoods in order to get a property at a discount. This, however, is not the case. The real key here is to do your research.
Once you’ve purchased, you don’t have to take a lot of time managing the property or your tenants. Having a property manager do the work can allow you to benefit from your investment without the need to worry about rent collection and maintenance issues. For more information on getting the most out of your real estate investments, contact us today.