Are you looking for a way to make passive income? Do you want to invest your money but know nothing about the stock market?
Instead of putting your money into unreliable and risky investments, consider real estate.
With these insider tips, you could bring in several hundred -- or even several thousand -- "extra" dollars a month with a rental property.
Not sure how to choose an investment property?
From location and price to potential appreciation, here are 6 things to consider when choosing the best investment property for your budget and financial gain.
1. Location
You've heard it before and it bears repeating -- location, location, location.
This is the top factor to consider when buying an investment property. Location determines how much rent you can charge, the type of tenants you attract, and how desirable your property is.
Things like safety, close proximity to public transportation, good schools, and a thriving job market are all attractive features when choosing an investment property location. Cities like Salt Lake offer all of these features and more.
With the emergence of property management companies, you can expand your location search and leave most landlord duties to the professionals.
Management companies handle everything from rent collection and tenant placement to maintenance and repairs so you can sit back, relax, and collect passive income on your investment.
2. A Number's Game
Let's face it. You're considering your first investment property to turn a profit. If the numbers don't make sense, what's the point?
Whether you're buying an investment property or renting out your current home, you need to crunch the numbers.
Compare your overhead costs to your income. If the rental income doesn't exceed your costs, you may want to consider a different investment property.
Remember, the mortgage on a home isn't your only expense. You also have to consider taxes, maintenance, and vacancy periods.
Hiring a professional agent with extensive knowledge of the real estate market can ensure you get the most bang for your buck.
3. Low-Risk Investment Properties
For landlords just starting out, you want an investment property that provides a steady, low-risk return.
Look for practical investments in highly-sought after areas like Salt Lake City, Utah. Your rental property should be in good condition and require minimal maintenance.
What does a practical investment property look like?
A three-bedroom, two-bath house with a standard layout, oversized yard, located in a safe community with good schools is a safe bet. An impractical choice would be a studio apartment above a noisy nightclub with no parking and exorbitant rent.
4. Potential Appreciation
As with any investment, the property you choose should provide long-term revenue. You want an investment property that appreciates in value.
You need to factor in both the buying and selling price.
When making a purchase, consider the value as-is and what it would be if you performed some minor upgrades like a fresh coat of paint or updated fixtures.
Most properties appreciate over time, which means you'll make a profit when it comes time to sell. But if you want to make a substantial return, you need to buy investment property in the right area.
Consider not only the city and community but the exact location of the house within the neighborhood. For example, properties with a lot of land or in a cul-de-sac generally appreciate more than others.
Choose the Best Investment Property and Start Making Money Today!
The time has come to invest your money in something secure.
The real estate market is booming, which is why buying investment property today is a sure-fire way to bring in passive income and see a substantial ROI.
The best part is, you don't need a real estate background to break into the landlord business.
The team at Wolfnest is knowledgeable, resourceful, and eager to help your investment property dreams become a reality.
Contact us today so we can help secure your financial future.
