Many investors want to expand their real estate investment portfolio by adding a rental property to it. Some investors would invest in properties in different states or even different countries. Others, however, aim to find rental investment property that is close to their own home. As this approach of finding a residential real estate property might have many pluses, it hides some downfalls as well. The secret is in learning how to find rental investment property close to home – not just any investment property – but the best one! Here are some tips to guide you through the way:
Related: 5 Ways to Find an Investment Property
#1 Know Where to Search in Order to Find Rental Investment Property Close to Home
A great way to find rental investment property close to home is using various sources. Being proactive in real estate investing is a great approach for being a successful investor. What this implies is not simply staying and waiting for the best real estate investing offers but rather purposely searching for them. Many real estate investors take the easier and more accessible approach when trying to find rental investment property. This method is, explicitly, using the internet. This approach has its benefits as the real estate investor can explore multiple real estate house rental websites at the same time. Additionally, it is time as well as cost efficient, an important factor for every investor in the field of real estate. Nevertheless, there is another possibility to find rental investment property close to home. This simply involves driving around. Although this might occur as an overwhelming activity, especially for a beginner real estate investor, it is surely beneficial. Its greatest advantage is the fact that the real estate investor is able to take a look not only at the rental properties available but their surroundings as well.
Related: How to Find Homes for Sale Near Me for Real Estate Investments
#2 Know the Local Housing Market and Be Prepared to Take Action
What is meant by knowing the local housing market here is knowing the available rental properties for sale. It is typical that the first real estate investor to see the property for sale is the same one who purchases it. Thus, if you are willing to get the best rental properties as a part of your real estate investment portfolio, you need to act fast. A simple suggestion is to schedule a visit at the property for sale right away. If you want to find rental investment property close to home and make money out of real estate investments, you have to be proactive. In case you like the available property for sale, make sure to seal the real estate investment deal before the demand for the specific rental property has increased significantly. This is because with the increase in demand, the market value of the rental property increases as well. Therefore, if you aim to make money out of real estate, invest in the residential real estate property you like sooner. In this way the price of the property for sale will still be reasonable and, most likely, negotiable.
#3 Research the Supply of and Demand for Rental Properties in the Area
In order to find rental investment property that will be a successful addition to your real estate investment portfolio, you need to research the supply and demand. Owning and managing a rental property close to home certainly has its perks. For instance, you are familiar with the area; you do not have to travel long distances in order to check the tenants or maintain the property; etc. However, to find rental investment property close to home is not always the best real estate investing decision. In order to make money out of real estate, you need to be confident that there is a demand for the rental property you offer on the market. Thus, it is crucial to explore if there is demand for rentals in the area of your choice. Additionally, do not forget to check what type of rental properties tenants want. This implies checking the traditional rental market as well as the short-term rental market (the rental market for Airbnb properties). Find a residential real estate property that suits your business plan and the current demand of the local real estate market.
#4 Use Mashvisor’s Investment Property Calculator
Probably the most important step when trying to find rental investment property, regardless of the specific location, is conducting investment property analysis. The easiest, fastest, and most accurate way to conduct investment property analysis is by using an investment property calculator. Mashvisor’s investment property calculator is one of the greatest real estate tools of this kind. Mashvisor’s investment property calculator offers various functions for conducting investment property analysis. First of all, the tool computes many real estate metrics. Such metrics include: cap rate, cash on cash return, cash flow, potential rental income, return on investment, etc. Additionally, Mashvisor’s investment property calculator offers some unique features. For instance, this real estate investing tool indicates whether a property for sale is a good investment opportunity. Mashvisor’s investment property calculator goes even beyond that. It reveals to the real estate investor detailed neighborhood information and analysis as well as property information. Moreover, it indicates which the optimal rental strategy for your rental property would be (traditional rental vs. Airbnb rental). The latter is of crucial importance with regards to the success of your real estate investing business.
Related: Mashvisor’s Investment Property Calculator: Real Estate Investing Made Easier
As previously described, owning as well as managing a rental property close to home can be a great real estate investing opportunity. For this to happen, the real estate investor should be cautious in finding and choosing the right rental investment property. Mashvisor’s tips and real estate tools will guide you through the process of successfully growing your real estate investment portfolio. Sign up today!