For someone looking at investing in rental properties, there are a number of details and processes to be aware of. At Americas Housing Alliance, it’s our goal to walk you through this process and get you a profitable property you’re comfortable managing.
A big part of this involves having a keen eye during the property selection process. The right filters in your search process will make everything from that point on much simpler and easier. Let’s look at a few basic tips for spotting the signs of a bad rental property.
You need to have a profit margin in your investment rental properties, and if the numbers don’t add up, this may be a red flag. If the seller can’t provide you with certain data, that’s a big no-no – elements like rental and vacancy statistics, neighborhood crime rates, year-to-year profits and others are all facts sellers should have readily available. If they’re guessing or unsure of any of these numbers, or if you get the sense they’re trying to conceal some of them, this could be your first sign that it’s time to move on.
Location is always a vital concern for any property, and a bad one can lower your ability to attract tenants. Look at crime rates, safety concerns, and the presence of schools or churches. If you know an area is declining, stay away – it can take decades for areas to become revitalized.
Maintenance will always be part of your job with turnkey rental properties, but there are signs it might not be worth the squeeze. If there’s been too much neglect, or if you immediately notice big maintenance projects that would be required right away, inquire about the maintenance history.
A “lemon” is a property that’s sat on the open market for months, but hasn’t sold. This could be for a variety of reasons, but it’s not likely many of them are good – do some research and find out why. On a rare occasion you’ll find that the previous owner simply did a bad job of marketing, but in most cases, you’ll find a legitimate reason why the property hasn’t sold, and why you should look elsewhere.
Want to learn more about our rental property investment solutions? The experts at Americas Housing Alliance are standing by.