If you’re considering buying your first rental property – or even if you’re a seasoned pro and you’re thinking about purchasing an additional investment – you may be asking yourself what type of property can make the best for rental.
The answer to that is, it can depend.
This is because what is right for one particular investor may not make sense for another, and vice versa. So, with such a plethora of property types that are available in the market today, before you move forward on your (next) purchase, there are some key questions that you should first ask.
For example, one of the biggest of these is, “What are the current trends in your particular area?” Here, you will want to get a feel for the type of renter who will be looking in your desired location. In other words, if you are primarily targeting an area near a college, then multi-family or even a small apartment building may serve you best.
Conversely, if your ideal location is more attractive to families with kids, then a single family home – especially one that is close to a grade school and / or a junior high – may be your best bet. If this is the case, you will also want to consider a property that isn’t too small – such as only a one- or a two-bedroom – as well as one that isn’t too large (such as five bedrooms or more).
Whichever type of property will serve you best, it is important to also factor in the amount of time that you’ll need to spend managing tenants, as well as keeping the property up to date on any maintenance and repairs.
With that in mind, working with a professional property manager can oftentimes be a great solution, as this can allow you to reap the benefits of your investment, while also providing you more time to focus on other things. For more information on how a property manager can fit into your real estate investing strategy, give us a call.