It is well known that real estate and investment properties deliver great returns. More people have started getting into the real estate investing field to secure passive income and diversify their investment portfolio. Making smart choices about which properties to choose is crucial to gain the benefits of this additional income stream. But what exactly makes a good investment property?
Location is one of the most important factors when choosing a property. If the home is in a popular and desirable neighborhood, there is a much greater probability of securing a higher rent compared to houses in highly-congested or rundown areas. Being nearby certain conveniences and necessities such as freeways, schools, restaurants, markets, and places of employment is important for future tenants. On a larger scale, you’ll want to make sure the city in which you purchase an investment property has above-average population growth, job creation, and affordability. For these reasons, Las Vegas consistently tops “Best of” lists like this one from the National Association of REALTORS®.
In order to have a profitable outcome, the property should not need much work to maintain or manage. Although issues do arise, you should not have to pour money into the investment itself. A turnkey property rented to trustworthy tenants for an extended lease period can generate a great profit. And having an experienced property management company, (ahem) like Coldwell Banker Premier Realty, helps too.
Choosing the right type of residence (single-family, townhome, condominium) makes an impactful difference on your bottom line as a landlord. It is important to know what tenants are looking for in a are most in demand. You don’t want to own a three-story townhome if you live in a city with a high population of retirees. Single story residences would be more conducive to that environment. Do your research and purchase to the demographics of the renter’s pool.
If you are interested in shopping for additional rental properties, be sure to make your Coldwell Banker Premier Realty Sales Associate or Property Manager your first call.