How to Choose Your
Next Rental Investment
Tips from Pam Blanco
from PamTexas.com
R
eal estate investing is a
challenging endeavor.
Not only should you pick
a property that has strong
financials or potential for ROI, but
you should also select a property
based on how it will perform as a
rental property.
We’ve compiled some things
to look for when selecting a good
property:
1. Strong Market values. If you’re
planning on holding your property
to collect rental income, you need
to make sure that the property value
will continue to appreciate. Selecting
a property in an area with strong val-
ues, coupled with a healthy demand,
will insure that your property will
maintain its investment value.
ing area, you may have a harder
time renting the property out and
that should go into your calcula-
tions for your ROI worksheet.
3. Close proximity to employ-
ment and shopping. Conve-
nience is key for rental properties.
While demand may be high
currently for rental properties,
there are still enough options on
the market for tenants to pick a
place that is more convenient and
better proximity to amenities. If
the property is hard to get to or in
an out of the way location, you’ll
need to make sure you account for
this in your marketing plan.
the majority of the homes are well
maintained, in good shape, and accu-
rately valued. If you’re the nicest home
in the neighborhood, you may find
yourself having a hard time renting or
selling the property.
4. Number of rentals in the area.
It’s important to not have a lot of
Large amounts of rental properties can also affect home
values if other rental properties are not maintained
to the standards that you maintain your properties.
2. Good Schools. Never underes-
timate the power of good schools.
Even though you will likely never
use the property, you will need to get
into the mind of your renters. If your
house is family friendly, you’ll want
to know what the schools are like in
the area. If the schools are top per-
forming schools, your property will
have an increased demand amongst
families with school aged children. If
the property is in an under-perform-
Realty411Guide.com
rentals in the area because you will
have to compete with other landlords
and you don’t want to get in a pricing
war because at that point no one wins.
Large amounts of rental properties
can also affect home values if other
rental properties are not maintained to
the standards that you maintain your
properties.
6. Location, Location, Location!
Ensure the property does not back up
to major roads or anything that could
potentially cause values to decrease.
Stepping back from the property and
reviewing the surrounding area with
a critical eye will be important to the
success of your property. Considering
how the surroundings will affect your
tenants and their lifestyle will allow
you to determine if this property is
5. Overall condition of the neigh-
borhood. The neighborhood needs to
reflect pride in ownership. This means
PAGE 14 • 2014
Continued on pg. 107
reWEALTHmag.com