Top three things you look for when considering a rental property?

17 Replies

Hey guys my first time posting on the forum, I've been a long time follower of BP. I am now searching to purchase my first rental property and I was wondering what are the top three things you look for in a potential rental property to buy and hold?

Thanks

David

great questions David I like to know about the same..

I think location is very important for a rental.

1 - location ( future potential )

2 - do the numbers work (cash flow)

3 - what will it take to get it rent ready (time,         dollars)

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1) location 2) inspection 3) cash flow

Don't forgot about crime...  :-)  Do you feel safe walking through this neighboorhood.

Most say location, location, location.  To dig deeper into that concept I look for at least 3-5 selling points for why  I like the location which can be for different reasons such as....being Close to a good school/ close to desirable locations such as shopping, sports arenas/Beautiful trees/ near transportation/ near hospital.  When it's time to sell, you want to have clear selling points and having several desirable points will protect your investment in the long run.  I believe the other factors will work themselves out in the long run if you have multiple location selling points.

location, current occupancy rates and potential outlook for the area

School district. Employment opportunities.  Good bones.

I'm a sub 30k guy...

1) Rent - what are the numbers...

2) Safety - If I'm not safe why will tenants feel safe

3) appreciation potential - Can i make this property appreciate and pull money out of the deal?

1. Location

      A. Future develpment of neighborhood

      B. Future Expansion of streets and Highways near the house

      C. Schools

      D. Crime

2. House Rules

     A. Block construction

     B. Minimum of 2 bathrooms 

     C. 2 Car Garage

     D. House built after 1990

3. Healthy Cash Flow 

In no particular order as long they fall within the scope.

We never look at only 3 because all factors come into play. For every home one factor may be more important than the other depending on the home and market. It's complex and not as simple as 1,2,3. :)

1.location   2.cash flow  3. condition of property.

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