If you are considering buying an older home that you want to fix up and rent out, you want to know if you're getting a good buy or not before you make an offer. It's important to look into the details of the property, and not just the physical attributes, if you want the property to be a good rental. You'll want to work with a real estate agent in the area when picking a rental property to help you find exactly what you're looking for.
Area and Schools
Talk with a real estate agent about whether the property is in a good school district and if it's in an area where people are trying to rent and buy homes. If the house is in a market where people are trying to move in, or where there are great schools and accommodations around the property, then it's likely that you won't have a difficult time keeping the property rented.
Old Home Hazards
Buying a home and fixing it up may not be as easy as replacing the flooring and hardware. If it's an older property you could have a lot of issues, like the following:
- Pipe galvanization
These are all issues that are going to cost you money because you need to have the damaged and toxic materials removed from the property before anyone can live there. There could also be mold and mildew issues if the house was neglected.
You want a house that you can buy, rent out to cover the mortgage, and then eventually sell or use the monthly rent as income. A real estate agent can help you find a house that brings in more rent than you have to pay out. They can also guide you in choosing a property that is going to increase in value over time if you want to sell the house. Make sure that potential profitability is a key characteristic you look for when going through properties.
Buying and old home that is listed as foreclosed, auctioned for an estate closing, or offered at a low rate because it's in poor condition can be a great way to get a good deal on a rental property. Know what you are buying and what will or won't be a good investment so you can make money in the future, and so you can be wise with your money now.