Monday, December 15, 2014 / by Betsy Birdsong
A. Before purchasing rental property, consider the following factors to make a good investment:
· Find moderately priced properties, so you can generate more cash flow than higher priced properties. Your tenant’s rent should cover the mortgage, utilities, and additional expenses in order to produce a cash flow.
· Get the full cost of owning and repairing the home. Have a property inspection before you purchase the property to identify any potential repairs. Also, get written quotes from contractors for repairs you’ll need to make before renting out the home.
· Carefully select your tenants. Each time a renter leaves, you have to prep it for another tenant by paying for repairs, possible upgrades, and other costs such as advertising, credit and background checks, plus taking time to show the unit. Long-term tenants are better for your investment, so choose wisely and treat them well!
Do you have a real estate question you want answered? Feel free to call us at 504-780-9422 or email Info@TheBirdsongRealtyGroup.com. Perhaps we will feature it in our next blog entry!