January 5, 2018
Looking to jump into the world of investment properties? There are many benefits to investing in a rental property, and knowing what to look for is essential to your success!
#1 – A Good Neighborhood
A good neighborhood will have a positive influence on the types of tenants you attract and will increase your vacancy rate. Neighborhoods that are near schools and college campuses will attract students and have a high demand for rentals. A property in a major city will invite tenants of the working-class who are likely to rent long-term.
#2 – A Low Crime Rate
When crime rates in an area are high, vacancies are relatively common in investment rental properties. There are ways to check crime rates of different neighborhoods online, or you can inquire about crime statistics for the area with the local police department.
#3 – Abundant Amenities
A rental property will often provide a higher investment return if it is in an area with ample amenities like malls, movie theaters, gyms, and restaurants. Renters are willing to pay more for the convenience of living close to shopping centers and other essential establishments.
#4 – A Reasonable Cost
Purchasing an investment property at a middle-to-high price in an area where the demand for rental spaces is low can be a difficult and costly investment. Check average rental rates for the area so you don’t end up with a mortgage payment that is higher than the rent you receive.
#5 – Renovations You Can Handle
Buying a brand-new home or one that is older but in great shape likely means you won’t have much renovating to do before putting it on the rental market. However, it’s a popular choice among property investors to purchase a fixer-upper to renovate and “flip.”
If you’re interested in a fixer-upper, knowing how big of a renovation project you are personally able to handle (both financially and otherwise) is key to deciding whether an investment property that needs work is right for you. Additionally, it’s important to partner with a Maryland private money lender to obtain your hard money loans in Maryland to pay for the renovations.
Maryland Private Mortgage is a private money lender that strives to bring success to their borrowers and show them that buying a rental property is a great investment. We have originated over $46 million in rehabilitation loans for residential investment properties and pride ourselves on being able to offer all of the resources you need to accomplish your investment goals.
Contact us today to learn more about Baltimore private money loans, or to get pre-qualified for your next investment property.