Are you planning on buying your first rental property? If so, you’re making a smart choice.
There’s never been a better time than right now to purchase a rental property. Why? Mortgage interest rates are still low when compared to historical highs and home values in the Central Valley are among the lowest in the State of California.
In this article we will provide you with tips to consider for buying a profitable rental property:
How To Choose A Profitable Rental Property
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
Learn More about Buying a Profitable Modesto, CA Rental Property
To learn more about buying a profitable Rental Property, or to speak with us about getting property management in Modesto, contact RPM Central Valley today by clicking here to connect with us online or calling (209) 572-2222.