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?
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. Curb Appeal Or Potential Curb Appeal.
2. Square Footage.
3. An area with good growth prospects.
Don't forgot about crime... :-) Do you feel safe walking through this neighboorhood.
1. Cash flow
2. Demand (Can I rent it fast and to a large pool of potential tenants)
3. Longevity (Will this still be a good property in 5 years)
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
I agree with Lee.
I'll give you 4 things;
location, location, location and potential. If you get those right, everything else falls into place, well, so long as you don't grossly overpay. :)
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. Cash flow, 2. Location (to avoid high risk properties or tenants), 3. Exit strategy.
A. Future develpment of neighborhood
B. Future Expansion of streets and Highways near the house
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.
I will add one more that I did not see mentioned...
Floorplan - e.g. A 2 story model in a 55+ community has less demand.
1.location 2.cash flow 3. condition of property.
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