There are over 48 million rental units all across the country as of 2022.
If you're considering investing in property, you may be unsure where to start. After all, it's a big commitment that could lead to either a boost in income or financial losses.
But investing in property doesn't have to be overwhelming as long as you make a plan. Keep reading for the top investment property questions to ask yourself to ensure your investment is a success.
What Kind of Property Am I Looking For?
Do you want to invest in a large home, a townhouse, or an apartment? What kind of amenities are you hoping the property will have? These are important questions to start with to narrow down your search.
Asking yourself this first question will get your property investment juices flowing!
What Can I Afford?
This is a question that will guide your entire property search. Take a look at your finances, making sure to take into consideration not just the potential price of a property but also the upkeep involved.
By going into your search already knowing the exact price range you can afford, you'll be able to find a property that aligns with your needs.
Do I Know About the Area?
Find out as much about the area you're looking to buy property in as possible.
Are there attractions that renters would be interested in nearby, like restaurants or shopping? Which schools are close? Is it mostly students, families, singles, or others that live in the area?
Knowing about the area will help you more clearly picture the demographic that may be renting your property.
Are There Ongoing Costs?
It's crucial to find out the ongoing costs of a place before buying an investment property. All of these individual costs will add up, and looking at them all together beforehand will help you decide on the right property for your finances.
Look into the costs of property taxes, insurance prices, potential maintenance issues, and so on.
Would the Property Be Appealing to Renters?
Think from a renter's perspective and evaluate the property from this mindset. Does it have things that may make it stand out to renters, such as a backyard or high ceilings? Is it priced appropriately for the area that it's in?
If you believe renters would jump at the chance to live in the space, you've likely found yourself a great investment property.
How Do I Plan to Manage the Property?
Will you attempt to manage the property yourself, or will you go with a management property to take all that additional stress away?
A management company can do many of the essential tasks you don't have time for, like screening applicants, handling leases, and dealing with maintenance. If you want to save time and energy, going with a management property is a smart move.
Turn Your Investment Property into a Success
These investment property tips in the form of questions will lead you to a property that creates a profit and attracts great renters.
If you're looking for help managing your new San Diego investment property, we've got you covered. Reach out to us to find out how you can benefit from our property management services.