Are you interested in buying a profitable rental property? Who isn’t right? Many investors start out with the hopes of buying a profitable rental property but they fail because of lack of knowledge.
Thankfully, in this post we will share with you our best tips for buying a profitable rental property in California or elsewhere in the United States.
Tip 1 – Rent
What are comparable properties in the same neighborhood renting for? This is by far the most important question to ask because, your primary goal with buying a Modesto Rental Property is to earn cash flow and if the rent won’t cover your mortgage, property taxes and other expenses it’s not going to be a profitable rental property.
Tip 2 – Neighborhood
Learn more about the Modesto, CA neighborhood by researching it online to inquire about quality of life and crime statistics there because a higher amount of vacancies may tell you that it’s a seasonal neighborhood which is close to a university or that the neighborhood may be in decline due to crime.
Tip 3 – Amenities
Are there shopping malls, decent grocery stores, restaurants, parks and other things to do nearby? Good amenities are important to consider when buying a Modesto Rental Property because amenities are also one reason why some renters become long term renters.
Tip 4 – Jobs
Who is hiring nearby? Are most of the area jobs seasonal, restaurant or hospitality positions in the Central Valley.
These are also important questions to ask because when someone settles in an area they will also have to work there too and if they can’t afford to pay their rent due to lack of jobs the renter will have to ultimately look elsewhere for jobs and move if their job is far away from their rental.
Tip 5 – Schools
Last of all, but most important, what are the quality of the schools in the area? This question is important to ask because, you could ultimately be renting to families with children or a couple who is considering starting a family
Need A Property Manager? Click Here
Are you interested in searching for rental properties in the Central Valley or you need to speak with a property manager about managing your rental? Contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.