Where should you buy an investment property?

Are you looking for a way to earn more money? Or a potential second career? Then it might be time to consider buying an investment property! Investment properties can be a great way to bring in more income. You can turn your investment property into a long-term residential or even a short-term rental, depending on your preference or time commitment. Each option can be a viable way to turn your investment property into a secondary income stream or a second career.

When considering an investment property, it’s important to think hard about where you want to buy. With an investment property, you have many more options than you do when purchasing your home. So, what location issues do you need to consider? Here are a few we thought we’d share.

• Proximity: Managing a rental property can be a lot of work, especially if you plan on doing it yourself instead of hiring a property management company. So, when looking for a great place to buy as a rental unit, make sure you take distance into account. How far do you want to commute to address an issue? Do you want to be able to keep a close eye on your property? If so, we suggest looking for a property in your geographical area!
• Local laws: Another thing to consider when buying an investment property is the local rental laws and codes. If you buy in a different city or state, you’ll need to make sure you understand the local laws and rules, or you may run into trouble. Work with a local property management company to ensure you know what you are getting yourself into!
• Neighbors: When buying an investment property, you must know what kind of area you are buying in and what kind of neighbors your property may have. Problematic neighbors or neighborhood issues can drive away good tenants or lower the value of your property. If you want to get the best return on your investment, make sure you know the type of area you are considering buying in.

Buying an investment property is a big decision. There are a lot of things to consider besides where you will buy. So, if you have questions about your financial readiness or how you can break into the investment property world, reach out to one of our local PRMI advisors. They can talk you through your investment property financing options so you can have all the tools you need to start building your real estate portfolio!