The demand for single-family rental homes continues to rise in Colorado Springs. Choosing to buy an investment property provides an incredible opportunity to fill a need and earn a profit. But what should real estate investors look for when searching for a home to invest in?
The Single-Family Rental Checklist
Know The Numbers
Numbers play a big role in buying a rental property, and we’re not just talking about the purchase price. Make sure to take into account the number of other rental homes in the area, the mortgage rate versus the current market rent, monthly costs such as maintenance, property management fees, etc., and how much money is needed to get it rent-ready.
Easy to Maintain
You can’t own a rental property without running into maintenance at some point in time. Things break down or need repair. You can’t stop that from happening. What you can do, however, is search for a single-family rental that will be easy to maintain. Look at the age of the home you’re looking to buy. Older homes tend to require more maintenance while newer homes typically come with warranties. You can also look for features that are easy to maintain, such as wood floors over carpet, newer appliances, and homes that have already been updated.
The age-old saying in real estate has stuck around for a reason. It’s true! Location plays a huge factor in how successful a home will do in the rental market. Be sure to do your homework when researching the Colorado Springs neighborhood you’re interested in. How many rental properties are close by? What amenities are in the area? Local attractions? All of these play a big role in whether or not the property will do well as a single-family rental.
Rental properties get a lot of traffic. The U.S. tenant stays in a single-family rental on average for about 2.5 years. This means your rental will potentially be home to a wide range of different tenants. For that reason, it’s important to choose a home that will appeal to many. Neutral tones, modern updates, and simple floorplans tend to be more attractive. Steer clear of homes that are too unique or that have awkward or outdated features. While these properties can be transformed into rentals, the odds of finding qualified residents quickly can be more challenging.
Owning a single-family rental in Colorado Springs is a great way to build wealth for your future. Make sure to fully evaluate the home you’re thinking of to start your rental investment journey off on the right foot!
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