Franklin D. Roosevelt once said, “Real estate cannot be lost or stolen nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
Buying a rental property is one way you can invest, expand your portfolio, and generate monthly income for yourself.
As with any investment, there are pros and cons to owning and investing in a traditional rental property or an Airbnb. If you are considering owning an investment property, there are several questions you should ask yourself:
1. What kind of property do you want?
Are you looking for a condo? A single family home? A multiplex? There are so many different types of properties that you can invest in each with different levels of associated expenses, such as taxes and maintenance.
It is important that you are aware of these potential additional expenses before investing in a property. You want to make sure that your rental income will cover these expenses so you’re not losing money at the end of the month.
2. What is an ideal location?
When thinking about an income property, you want to make sure that you have an ideal location where you will attract high-quality tenants. Whether it is a rental unit with a yearly lease or an Airbnb property, you want to have great tenants or guests.
Consider properties that are situated close to major amenities or are located in desired neighbourhoods. You also want to consider the distance between the rental property and your primary residence. Is it close enough that if there was an issue you would be able to go over and help the tenants? Is the property far away and you would need to hire someone to run maintenance calls?
3. Does it make financial sense?
If you want to make money by investing in a rental property, make sure that you consider it as a long-term investment. Rental properties aren’t typically investments that immediately generate a profit.
4. What is the expert’s opinion?
Make sure that you speak to a real estate professional before you decide to purchase an investment property. Real estate professionals will provide you with the necessary information to ensure you are making the best decision for your lifestyle.
If you are looking for professional help with an investment property purchase, contact the Paula Mitchell Group today and we will help you through the process!
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