If you are a commercial real estate investor, you likely know the basic principles of what to look for in a prospective property. You want an investment that is in good condition, priced reasonably and can be ready to rent quickly. These factors are not the only ones you should be taking into consideration, though.
Being choosy when it comes to your investments can make all the difference in your profits. You only have so much capital to invest, so you want to get the highest returns possible when you are in the market for a residential property to lease. Consider the following criteria during your hunt.
1. Neighborhood is trendy
You have heard it many times: location, location, location! Yes, location is of the utmost importance when it comes to selecting a residential property to invest in. According to Fox Business, this is true because proximity to amenities, entertainment and other attractions is priceless to potential renters. You can pinpoint the best location by scoping out properties in your city’s trendiest neighborhoods.
2. Taxes are low
You have found a property in a great part of town, but what else should you research before making the plunge? Consider the property taxes that may impact your profit. Tax rates can vary wildly from one area to the next, so you should always find out what rates will be applicable to the property that interests you.
3. Vacancies fill fast
Do some research before making any decisions to see how quickly vacancies generally fill in the area of your prospective property. Even if it is in a good area and otherwise seems promising, it might surprise you to find that renters do not always flock to open apartments. Consider how this might impact your profit so you can make a fully informed choice.