Obtaining a Boston rental property can be a marvelous investment. Before you do though, it’s important for you to get a good idea of what to look for in a property, especially if you want a return on investment. Some single-family houses make better rental properties than others. You can make use of the specific qualities of investment properties to identify which properties have profit potential. As soon as you identify a property that has the qualities of producing potential profit, consider that property is a solid investment.
One good quality of a rental property is the market where it can be found. Usually, the more profitable rental homes are in growing real estate markets. This is where the demand for rental homes is strong. The location of the property will also specify things like your tenant pool and rental strategy.
Other signs to look for are a strong local job market, low crime rates, and future development plans. In as much as you can, find out for yourself about any nearby amenities, public transportation, and features of the property that might be trendy or in-demand. To maximize the return on your investment, study the structure and operation of the local market to gain a deeper understanding before deciding on anything.
When you think of a property’s location, think of the price. The ideal rental property should be within your budget, and at a price that is at or below market rate. When calculating the property price, don’t forget to include things like closing costs, repairs, and insurance. When you’ve found a truly affordable rental property, you’ll know because you can pay for it and still have cash reserves left to spare.
However, the lowest priced property doesn’t automatically mean it’s the best value. If the property is priced well below comparable properties in the area, that’s something you should look into first, prior to deciding. Potentially, you could have gotten yourself a great bargain that gives you instant equity.
When choosing a rental property, another significant detail to remember is cash flow. A good rental property will constantly provide a strong positive cash flow. In short, you should be earning a profit beyond your property expenses every month. To find out whether a property will provide positive cash flow, you’ll need to do a rental property analysis. Property-related expenses should always be noted, especially those that are often missed. After you’ve assessed all of the details of your rental property, if the cash flow remains positive, then the rental is almost certainly a good choice.
Part of calculating your numbers will always include the cost of any repairs and maintenance. All single-family houses require regular maintenance and repairs. Anyhow, there are scheming sellers who will carefully hide any major property flaws. If your house isn’t close to your rental property or doesn’t have experience with home remodeling and repair, be sure to include property management costs in your calculations.
Whilst it’s a delightful thought to try and operate your own investment property, it is more sensible to hire a professional property management company, such as Real Property Management Commonwealth, to do it for you, especially when you’ve had no experience with managing details like this. Review all of the necessary details like monthly fees and pertinent costs. Make it a point as well, to add these to your budget.
Through these qualities, you can examine each property and identify which ones would make for a good investment.
Do you have your next rental home already? If so, make sure you get a good manager! Real Property Management Commonwealth is here to help! Contact us online or give us a call at 617-299-2342.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
