Want to Find the Best Rental Investment? Look for These 5 Things

by Silver Spoon Properties & Lending 03/31/2024

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:

Neighborhood

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.

Schools

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.

Job Market

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.

Amenities

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.

Rent

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.

About the Author
Author

Silver Spoon Properties & Lending

 Here at Silver Spoon Properties and Lending we have over 28 years experience in real estate sales, finance and loans, banking and management.

We are a full service brokerage offering residential and commercial real estate and lending services.

Whether you are  first time home buyer, seller, or a seasoned investor, we cater our service to meet your specific needs.

Consider us your one stop shop for residential and commercial real estate sales, loans and financing options like SBA, commercial and residential mortgages, and private money financing.

We are also a Certified Short Sale & Foreclosure Brokerage (SFR) through the National Association of Realtors. Please call us today to discuss buying, selling, or financing your property or for a free consultation to discuss your individual scenario.

We Offer:

  • Full Service Real Estate Service for Buyers & Sellers
  • Residential & Commercial Loans
  • SBA Financing
  • Private Funding
  • Property Management