The following is a guest blog from Katie Conroy, the creator of Advice Mine. Katie enjoys writing about lifestyle topics and created the website to share advice she has learned through experience, education and research. Image Source:
Before you purchase an investment property, consider several factors. You want to make sure the expected return on your investment is greater than the costs of purchasing, maintaining, and managing it. One way to increase income while decreasing expenses is to find a property needing renovation.
Choosing the Right Property
When looking for an investment property in Des Moines, consider what kind of return you want to see. Weigh factors such as location, the condition of the property, and the current market. Rental property that generates a lot of income, but doesn’t have much growth potential is excellent, but you want to purchase one that also has room for appreciation.
Finding the Right Location
When searching for an investment property, consider the area. Try to choose a property in a good neighborhood that’s growing, increasing the value of other homes in the area. When selecting an investment property, proximity to public transportation is another factor that’s attractive to potential renters. It also makes it easier for you to get to and from your investment property.
Additionally, consider entertainment near your rental homes. Des Moines is home to museums, art exhibits, parks, and historical sites to explore.
Do your research before purchasing an investment property. Look for information about estimated rental rates, the condition of the home, and the repairs that may be necessary. That way, you can make an informed decision about whether a particular parcel is suitable for you.
You can get a lot of information by reviewing the neighborhood. What kind of businesses are in the area? What are the average prices of homes in the area, and how much are the monthly rental costs? What’s the intermediate income level of residents in the area? You can find all of these pieces of information on websites such as Zillow.
Deciding on Management
Another thing to consider is how much you’re willing to manage yourself. If you don’t want to handle the day-to-day responsibilities of being a landlord, you can hire a property management company to take care of everything for you. However, this strategy eats into your profits. On the other hand, if you want to be a hands-on landlord, it’s necessary for you to be familiar with state laws regarding tenants and landlords.
Upgrading Your Rental Property in Des Moines
Once you’ve found your investment property, start improving it. The more luxurious the home, the greater the return, but make sure the upgrades don’t go over budget.
You may want to consider working with a freelance landscape designer to make your yard look incredible. Not only does this increase the value of your home, but it also makes it more appealing to potential tenants. You can find landscape designers through online job boards, such as Craigslist or Indeed.
Diversify Your Income With Real Estate
Buying rental properties is an excellent way to earn passive income. Choose your building wisely, and decide on upgrades to bring in high-value tenants.
For help finding the right rental property in Des Moines, contact Home Sweet Des Moines.
The following is a guest blog from Katie Conroy, the creator of Advice Mine. Katie enjoys writing about lifestyle topics and created the website to share advice she has learned through experience, education and research.