Buying rental properties can be a great way to build your wealth. However, as in most real estate investment, it is sometimes difficult to know if you’ve found a good deal – especially the first time. Here are some things to look for to be sure that rental is a great investment.
3. High home prices.
Look in towns with high home prices, as this creates rental demand. What do people do when they can’t afford to buy? They rent.
4. Low maintenance buildings.
5. Good rental history.
6. Below market rents.
Buying rental properties with below-market rents means you get to raise rents. Raising rents means you immediately raise the value, because rental property values are based on income.