{"id":11705,"date":"2019-02-21T15:15:45","date_gmt":"2019-02-21T23:15:45","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=11705"},"modified":"2019-02-15T10:24:42","modified_gmt":"2019-02-15T18:24:42","slug":"top-considerations-to-take-into-account-when-buying-rental-property","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2019\/02\/top-considerations-to-take-into-account-when-buying-rental-property\/","title":{"rendered":"Top Considerations to Take Into Account When Buying Rental Property"},"content":{"rendered":"<p style=\"text-align: justify;\">There are many things to consider when it comes to investing in rental property. Below are the top three considerations you\u2019ll want to take into account when buying rental property.<\/p>\n<p style=\"text-align: justify;\"><strong>Consideration 1 : Location<\/strong><\/p>\n<p style=\"text-align: justify;\">I can\u2019t stress enough about how important the location of your rental property is. Often times new investors don\u2019t put enough emphasis on where their property is located. You will want to purchase your rental home in an area that is conducive for rentals. Watch out for HOA\u2019s and rental restrictions on any property you are looking to buy. Fees from a homeowners association can eat into your profits quickly and often times there are restrictions on how and when you can rent your property. Also consider the neighborhood at both ends of the spectrum.<\/p>\n<p style=\"text-align: justify;\">A high end luxury home can often bring a great rental price but many times these homes have less demand as a rental and can sit vacant for many months, taking away any chance for a profit, especially if you are making mortgage payments every month. At the other end of the spectrum, a house in a \u201cwar zone\u201d that appears to have a higher ROI can often have high turnover which is very expensive. Finding the balance in location will help you maximize your rental income. You want an area that is affordable, expanding in growth and offers very little restrictions in leasing.<\/p>\n<p style=\"text-align: justify;\"><strong>Consideration 2 : Cost vs. Value<\/strong><\/p>\n<p style=\"text-align: justify;\">Many of us have heard this saying before. You can look at the price of a property and think it\u2019s a great deal but sometimes when you look close there\u2019s a reason the property is \u201ccheap.\u201d Low priced homes are often low priced for a reason. If it needs a major renovation you will need to add those costs to your bottom line and determine how long it will take you to recoup the cost of the repairs.<\/p>\n<p style=\"text-align: justify;\">Touching again on location, many times homes in high crime areas, appear to be low priced, but in fact the actual cost is very high when you end up dealing with high turnover and possible tenant damage to the property. You can make changes to the building but it\u2019s very difficult, if not impossible, to change the neighborhood. I have seen it time and again where people buy a rental property that has a low price tag but in the end, it costs them way more than they could ever actually make in rental income. So be sure to not make price the main consideration. In fact I recommend making it second or 3rd to location and growth potential.<\/p>\n<p style=\"text-align: justify;\"><strong>Consideration 3 : Growth Potential<\/strong><\/p>\n<p style=\"text-align: justify;\">This consideration is very important when looking at rental properties. What is meant by growth potential could be called, equity potential, or highest and best use. Basically can the property become more than it is as it sits now? That\u2019s the question you need to ask yourself, or your agent who\u2019s helping you purchase your rental homes. Some examples of highest and best use are, taking a property that has strictly been a residential property and making it commercial. You\u2019ll need to consult with the city or county to determine if zoning will allow for this. But if it is possible, you can generally get much higher rents for a commercial property than a residential.<\/p>\n<p style=\"text-align: justify;\">Other considerations might be adding another living unit, building a new property if there\u2019s extra space on your lot. Or maybe subdividing and selling a portion of your property. The simplest form of growth potential is simply finding a property that has lower than market rents and raising the rents to increase income!<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/realtybiznews.com\/considerations-to-make-when-buying-rental-property\/98753008\/\">Considerations to Make When Buying Rental Property<\/a> By Peter Garian | Realty Biz News<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many things to consider when it comes to investing in rental property. Below are the top three considerations you\u2019ll want to take into account when buying rental property. &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2019\/02\/top-considerations-to-take-into-account-when-buying-rental-property\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-11705","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Top Considerations to Take Into Account When Buying Rental Property &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2019\/02\/top-considerations-to-take-into-account-when-buying-rental-property\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Top Considerations to Take Into Account When Buying Rental Property &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"There are many things to consider when it comes to investing in rental property. 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