If you want to buy properties for rent with the intention of renting them out, the worst thing you can do right is going to a broker and have them find a property for you. Why? Because brokers are in the business of selling stuff at you might be pressured into buying before you even get the chance to check out the property yourself. If you want to buy property because you want to earn a steady income from rent, there are certain factors you need to consider. And in this article, we are going to walk you through what these factors are.
The first thing you need to consider before buying property is the location. I’m not talking about specifics cities, though Indianapolis Mortgages are great right now. Now, it isn’t necessary for you to buy a property located in already established neighborhoods (real estate bestsellers). In fact, we don’t recommend that you buy a property located in these neighborhoods. What we suggest you do is to buy a property located in an up-and-coming neighborhood where there development zones being established or some other development. People flock to these places for work and would be willing to pay the rental price. Even better, they tend to rent for the long-term so you don’t need to worry about vacancies.
Another thing you need to consider are the taxes. How much will you be paying in property taxes? The thing about real estate taxation is that it is a not a cookie-cutter process where all properties are taxed the same. Check with the local tax assessor’s office that your prospective property belongs to and get information taxes.
High taxes are not necessarily a bad thing. This is especially true if you live in a neighborhood that has high rental rates where tenants tend to stay long.
Once you are sure about the location of the property and the taxes you need to pay, the next thing you need to consider is your budget. How much are you willing to pay for a rental property? If you are like any other average investor, you probably already had a price in mind before you even researched on the listings. And we’re here to tell you that having a fixed price that cannot be moved can put you at a disadvantage because the properties that offer the most in rental profit could be more expensive by a tens of thousands of dollars more. That said, make a budget to pay more.