Kelly Okimoto, Nick Sadek Sotheby's International RealtyPhone: (916) 335-3185
Email: [email protected]
Email: [email protected]
Buying a rental property is an excellent way to invest in real estate. It can be very profitable as an individual or when working with a larger investment entity. However, some rental properties are definitely more profitable than others. If you're considering investing in a rental property, pay close attention to these key features:
Profitable rentals are usually in high-demand neighborhoods, and specific areas can affect your vacancies and turnover. For example, if your property is in a college town, you may have plenty of potential tenants leaving more vacancies during the summer months compared to the rest of the year.
The overall quality and popularity of schools in the area can affect a rental's profitability. Properties near highly rated schools and in popular districts will bring in higher profits when it comes time to sell your property or rent it out.
Rental properties in areas with high employment rates and rapid growth attract the most tenants. The proximity to large company offices, industry and other high-volume job generators will increase the property value and your eventual profits.
Access to amenities and culture is crucial to the overall demand for a rental property. Parks, restaurants, grocery stores and entertainment all make for profitable neighborhoods. Also consider the proximity and availability of public transportation. Properties conveniently close to bus lines or subway stops are popular among renters of all kinds.
No matter how sought-after the neighborhood or property, a rental has to be affordable to generate income. The most profitable and least-vacant rental properties are strategic about their rent and other fees. Study the average costs of living and rent of similar properties in your area to determine what potential tenants expect to pay. This will also help you turn a profit when you sell the property down the road, as properties with historically low vacancy rates are attractive to investors.
If you're interested in making money investing in rental properties, these are all important factors to keep in mind. Consider what the most successful properties have in common and use that as a guide to help you find the best investment.
Professional Real Estate Agent serving and educating the Sacramento area in home buying and selling. When selling a home, I can make your home attractive to its ideal audience - which can make all the difference for some home buyers. Things like staging the home, making repairs and minor improvements can make all the difference. When buying a home, you need someone who knows this area inside and out. I will be your advocate and work with you to find the right home at the right price for you. We'll work together to find a home in the neighborhood you want, with the amenities that matter to you. I'm passionate about working with the community, from supporting youth and homelessness programs, to bringing awareness to health and community issues. Please feel free to connect, as I'm always looking to expand my network.
