Although it’s been said that the three most important criteria in real estate are location, location, location, if you are in the process of evaluating a rental property to purchase, there are actually a few more key items that you need to keep in mind – particularly if you want to turn a profit right away.
- Financials – One of the most important factors to consider is the financials. This can include a number of items, including how much you can put into the investment (both initially, and over time), as well as where you will borrow any needed funds, and how you will cover the ongoing expenses. The primary ongoing costs to think about include mortgage principal and interest, insurance, and taxes.
- Repairs / Maintenance – You’ll also need to think about any up-front repairs and / or upgrades that may be needed, along with ongoing property maintenance that will be required.
- Resale Value – Although it may sound strange to think about how much you may be able to sell the investment for down the road, considering the eventual resale value of a property before you purchase it is essential.
When all is said and done, another primary consideration in the rental property buying process is certainly the location. That’s because where the property is located can have a big impact on how much it may be able to appreciate over time. It can also be key in attracting various tenants – and in how much you will be able to ultimately charge for monthly rent.
In your overall property evaluation process, it will also be important to factor in the amount of time you may need to spend with maintaining the unit(s), as well as managing the tenants. If it turns out that the time commitment is too much, hiring a property manager could be the answer.
If you own – or you’re planning to own – investment property in the Orlando or surrounding Central Florida area and you’re interested in learning more about what an experienced property management team can do for you, give us a call today.