When you’re shopping for a good investment property in the Twin Cities, you need to pay attention to location. Once you decide to put it on the rental market, your focus must shift to the property’s appearance. Any home in the right location with clean and attractive curb appeal will earn you a large pool of potential renters.
Beds and Baths
Once you find the right location, it’s time to think about the type of property that’s going to appeal to renters. Homes with three bedrooms and two bathrooms are often in high demand among qualified tenants. Two full bathrooms are nice, but not a requirement. As long as there is a half bath or a three-quarter bath, you’ll still find that those types of homes are appealing to tenants. These are the properties that rent quickly. You’ll also have better luck when you’re ready to sell your investment property. Buyers want homes with at least three bedrooms and two bathrooms.
Look for an investment property that requires only some minor and cosmetic repairs. Putting down fresh carpet or new floors can go a long way in attracting renters, and it’s not an expensive thing to do. Newly painted walls are also noticed and appreciated by tenants. It’s worth the investment to have the home looking clean and inviting when prospective tenants come to see it. You don’t have to spend a lot of time and money, and you’re still giving tenants the updated, fresh home that they are seeking.
Financing Your Investment
Before you choose your investment property, do some math to figure out whether you will finance the purchase or pay for it with cash. Every investor expects a certain amount of appreciation in the asset and all landlords hope to earn a decent cash flow. However, markets can change quickly and you cannot plan your investment strategy around what you might earn in rental income or what you hope will be the ultimate value of your home. Principle reduction is a great benefit when you finance your property and there are tax advantages to be enjoyed as well. Talk to your tax professional and a reliable financial planner so you can know how to strategize this investment for the best gains.
You have a lot to consider when you’re looking for investment properties in the Twin Cities. Remember that location and appearance will help you get excellent renters in place quickly. Contact Residential Property Management, Inc. if you have any questions about where to invest.