3 Tips for Choosing Sensical Rentals

by Julie McGee 01/26/2020

Photo by Photo Mix via Pixabay

For many investors, purchasing a property to rent out just makes sense. But finding properties that'll help you meet your long-term goals can be tricky. Whether you're considering a turnkey property or a property to rehab and rent yourself, keeping these tips in mind will help you weed out low-performers while you're hunting for a solid investment.

Tip 1: Run the Numbers 

For experienced investors, this is probably a no-brainer. For beginners, it's a smart reminder. When you're seriously considering any property, you need a solid expectation of the expenses associated with the property:

  • How much your mortgage will cost 
  • How much you'll pay in property tax and insurance 
  • Fees charged by a property management firm, if applicable 
  • HOA fees, if applicable 
  • Vacancy and repair costs 

Compare those numbers with the amount you can expect to receive in rental income each month. Ideally, you'll receive more each month than you'll be spending on the property. In some cases, a property might be worth purchasing even if you aren't going to pocket money each month. That comes down to your long-term goals and the market where you live. 

Tip 2: Buy in A Market You Know 

Though sometimes the best markets are far from home, and we'll the last to discourage investors from looking outside their own county, it's vital to understand the area. Some examples: 

  • College alumni might choose to buy near their alma mater
  • Retired or active duty military might choose to buy an investment property near a military base
  • Nurses might purchase an investment property catering to short-term nurses near their hospital 

If you're able to land an investment property in an area that caters to your niche, you'll already have valuable insight and an "in" when it comes to renting it out and understanding the real estate market in the area. Use your insight to give you an edge. 

Tip 3: Consider a Small Multi-Unit Property 

By purchasing a duplex, triplex, or quad you can live in, you can take advantage of an FHA mortgage--with its low down payment and interest rates--and secure a primary residence as well as a rental property (or two, or three). Although this type of investment can require more hassle, more tenant screenings, and more time in managing tenants and repairs, it can be a solid place to begin an investment portfolio. 

About the Author
Author

Julie McGee

My Client-First Philosophy

There are many qualities and skills that go into being an excellent real estate professional - integrity, in-depth community and market knowledge, marketing savvy, effective negotiation skills and a high-quality professional network, all of which are hallmarks of how I work.

These skills take years to develop and require continual experience and education. I've been practicing real estate FULL TIME in the Tampa Bay area since 1996 and have established myself as one of the areas top 10%. Time in the business, full time experience working both sides of the Bay and dedication to continued education set me apart from other realtors. My customers receive the highest level of expertise and service with complete confidence that they have chosen the right person for the job!      

As a Tampa real estate professional, I've also found that providing the very best service is essentially about putting my clients first. This means keeping myself accessible, being a good listener as well as a good communicator, and responding quickly to your needs. After 15 years in the business I left corporate first real estate to start my company, Tampa Home Sales, Inc. As a corporate company agent I struggled time and again with their changing policies and added customer fees that were mandated in the interest of the "company" that imposed unnessary financial burden on my customers and inhibited my ability to work with customers in a manner that meets their individual needs. Every buyer and seller has a different set of circumstances and deserves the attention and services that are as individual as they are.         

This "client first" philosophy has always been my approach and it requires me to continually improve my skills and ways of doing business. In addition, I've found that the latest nonproprietary technologies are enabling me to do everything I've always done, only much more quickly and efficiently. They've also helped me to extend the range of services I provide to my clients.

So when you decide that you'd like to buy or sell a home ANYWHERE in the Tampa Bay area; from South Tampa, Hyde Park, Palma Ceia, Harbour Island, Davis Islands, Channel Side, Beach Park, So Ho, Bayshore, Bayshore Beautiful, Golfview Estates, Parkland Estates, MacDill, Carrollwood, Westchase, Seminole Heights, New Tampa, Tampa Palms, Brandon, Valrico, Riverview, Lutz, Land O'Lakes to across the Bay cities of Clearwater, St. Petersburg, Palm Harbor, Safety Harbor, Largo and the Pinellas County Beaches, please contact me. 

I KNOW Tampa Bay!