What to Look for in a Single-Family Investment Property
By Meghan Belnap
Investing in real estate is a wise decision that can often help you enjoy a relaxing and full retirement. To ensure you purchase the best real estate, though, you need to know what qualities make for a good investment property.
While any property can ultimately turn out to be a good investment if you have enough determination, there are certain qualities that will make your life easier when it comes to the return on your investment. Here are some qualities to look for in an investment property:
Since you can't change the location of the home you choose to buy, it's important to consider this quality carefully. One important aspect to consider is the rating of the local school district since many young families move into certain homes simply to further their child's education. You should also consider factors such as the proximity to mass transportation options, expressways, stores and other amenities that will help set your home apart.
If a home is located in a community that offers extra amenities, that can only serve to make your property more attractive to potential tenants. Whether it's a community swimming pool, playground, walking path or other unique option, single-family homes in these communities usually sell very well. Just make sure the community is vibrant and actually takes care of these amenities so that you fully understand what you're advertising.
While people have different needs when it comes to bedrooms, almost everyone wants at least two bathrooms in the homes that they consider. Therefore, if you want to own a property that's easy to rent, you need to look for one that's built with multiple bathrooms. Once you own the home, make sure to update any out-of-date bathrooms, as this will be one of the qualities that people scrutinize most closely as they tour your house.
Most renters aren't looking to have much maintenance to do when they move into their rental home; so, if a home has a large yard, you can expect it to be a harder sell. Likewise, if you volunteer to take care of all the maintenance, you could find that you spend all your time on the upkeep of the home if it has anything more than a small patch of grass. Therefore, look for yards that are big enough to provide a functional outside space without having a lot of fast-growing plants or other hard-to-maintain elements.
The prospect of the income that an investment property can provide can be quite tantalizing. However, since you don't personally need this home for shelter, it's important to stay patient throughout the process. By being selective about your investment properties, you'll be able to have a quality portfolio that you won't have to shift around too much as the years pass.