You’re looking to buy a rental property. Just because it’s in the right area or neighborhood, doesn’t mean it’s the right fit. There are a few things to look for to make sure your foray into owning a rental property goes as well as planned, making sure your investment is worth it.
Finding the right market is vital to the success of your investment. The Denver housing market has been bustling for the better part of a decade, and that’s the kind of trends you need to be looking for. However, the fringes just outside of the metro area can also be a hot commodity. Rental properties in Denver can do very well, because the rents are high, but there is also a market for the people looking to get away from the hustle and bustle of the metro area. It’s important to consider both options.
Of course, the reason why people invest in rental properties is to turn a profit. It’s important to setting expectations when trying to find the property by looking in the right neighborhood that will get you the right amount of rent. PMI Elevation has licensed real estate agents the can help you find, purchase, and manage your next rental property. We offer turnkey real estate investment options.
There are opportunities in just about every market for rental opportunities, but it’s also vital to choose the correct neighborhood. Like it or not, some neighborhoods are more desirable than others – particularly for renters. Take into account the quality of the neighborhood. Are there a lot of rental properties there? Where is it from a crime standpoint? Do the residents of the neighborhood stay long term? Is there a homeowner’s association?
All neighborhoods have risks for property owners, so it’s important to minimize the risk to a level you’re comfortable dealing with. Typically, neighborhoods with less resident turnover and crime are easier to fill with long-term tenants, and allow for higher rents. If you ever have any questions about Highlands Ranch Property Management, Castle Rock Property Management or Centennial Property Management, please do not hesitate to reach out to PMI Elevation.
And the driving force behind getting a rental property in the first place is to turn a profit. Just like the right neighborhood can make or break your experience, so can rent. But those two things aren’t mutually exclusive. A neighborhood that contains a property that allows for more cash flow is going to be more desirable.
Even if you’re buying the house for future appreciation, it’s important to understand how much money is going to be going in and out regularly. How much money you put in your pocket each month after expenses are paid is important. If the property you’re eyeing has a lot of repairs or upgrades that are necessary before a tenant can move in, it’s vital to understand how that affects your bottom line. Can you go a few months without rent coming in? Or should another property that’s more ready for move-in immediately a better fit?
The condition of the property should play into your strategy, as it can make or break the experience for you and your potential tenants. If your strategy is to purchase a property and quickly turn it over to renters, then you might be leaning toward more of a move-in ready property.
If you want to renovate a property and turn it around to charge more rent, then the investment might be different. More work goes into these, but they can become lucrative not only from the standpoint of charging higher rent, but also when it’s time to sell the property.
The housing market works quickly in the Denver metro area, and there are plenty of people looking to rent. Choosing the right rental property can turn into a lucrative investment, which is why selecting the correct property can go a long way in forecasting your success.
For more information on how to assess whether you’re ready to purchase a rental property, especially if you are looking for a Parker Property Manager, Littleton Property Manager, or an Aurora Property Manager , contact Jim Shonts with PMI Elevation today.