Investing in real estate is a good idea. You know this. But, to be profitable, you have to invest in the right property.
How can you determine if a rental property is a good investment?
With so much
experience in Arlington property management, we know what to look for, and here are some of our best tips.
Arlington Rental Property Location
You don’t have to be an experienced real estate investor to know that location matters. It matters to buyers and it matters to tenants. It matters to you, when you’re choosing an investment property that you expect to make money from.
Most of the renters in Arlington want to be close to work, schools, and shopping. Many millennial tenants want a walkable neighborhood. Tenants with families will be looking at the school district and retirees will want a low-maintenance home close to recreation, entertainment, and dining.
Look for a property that’s accessible and easy for commuters, students, and families. Buying something too remote will only result in a
long vacancy or a lower rental value.
Neighborhood selection is also important. If you’re buying in an HOA, make sure there aren’t any rules that may restrict your ability to rent out the home. Sometimes, there’s a waiting period or a limit to the number of homes that can be used as rentals.
Modern, Well-Maintained Properties Always Make Good Investments
It’s often tempting to buy a “fixer upper” or a “handyman special.” After all, the price is usually lower than the other homes you’ll find on the market, and you can get excited about putting your own touches on the property. This isn’t always a great idea, unless flipping or
renovating properties is part of your investment goals.
Instead, look for a property that’s in great condition. You’ll want to collect rent as soon as possible. Buying a home that isn’t in great condition means that you’ll have to sink a lot of resources into it and spend a lot of time fixing it up. Not a lot of investors can afford that. Look for a well-maintained property that tenants will find attractive and appealing. Talk to a property manager so you’ll know if any repairs or updates will be needed before you list it on the Arlington rental market.
It’s about more than just maintenance. Make any cosmetic updates and improvements that the home may need in order to be attractive to tenants and to bring in the highest rental values.
Run Your Numbers to Know if the Investment is Right
Take a look at what you’ll spend on it and what you can expect for rental income. Your property manager should be able to conduct a comparable market analysis that tells you
what kind of rents you can expect. Compare this to the expenses you’ll face, including vacancy time, repairs, insurance, taxes, and management fees. Make sure you’re comfortable with the cash flow that you’ll earn. No one invests in property to lose money, and in Arlington, you shouldn’t have to.
We enjoy working with investors at every level. If you’d like some help identifying good investment opportunities or choosing the right property to rent out, please contact us at Arlington Realty Property Management.
