Spotting a good deal is paramount for real estate investors in Aurora. Whether you buy a banked-owned foreclosure online or work with a Realtor to find traditional sales, look for value when hunting for your first rental. House hunting for a property you will use as a rental is a little different from hunting for a home you will occupy. When you buy a home for yourself, you follow a different timeline for making improvements. With real estate investing, you want to get your property rent ready in as short of an amount of time as possible. By hiring a residential property management company, you receive the guidance needed to generate income from your rental home. According to an article by Investopedia, there are several features to look for when trying to identify a profitable rental home.
- Choosing a neighborhood
Renters pay more for homes in better neighborhoods because they feel motivated by highly ranked schools and their perceptions of better safety and prestige. In Colorado, some of the best areas to find rentals include Aurora, Denver, Highlands Ranch, Littleton, Lakewood, Parker, Cherry Creek and Centennial. According to Investopedia, where you buy will attract different kinds of renters. For example, if you buy a rental near a college campus, you’ll likely attract students and instructors.
- Checking out the property taxes
Before choosing a rental, check out the property taxes. Your property manager will give you an idea of the market rent for the specific home you plan to buy so you know whether the market rent will easily cover higher property taxes as well as home owner association fees.
- Looking for easy fixes
When you tour a home, pay attention to whether the necessary improvements are costly or fairly cosmetic and easy. Only an inspector and building contractor can give you a complete estimate of cost and issues. However, you can determine whether a home has potential as a rental. Can you change out a few lighting fixtures, paint and buy upgraded cabinets or appliances?
Your property manager will market your rental home to draw qualified tenants. If you own a rental that’s less than 20 years old, in a good neighborhood, close to amenities and has at least three bedrooms and two bathrooms, you’ll attract a higher rent. Instead of trying to guess the going rent in a neighborhood and what renters want, talk to experts. If possible, buy a rental home that will appeal to millennials since experts believe they will continue to delay home ownership.
At Legacy Properties-PM, we give all of our clients our undivided attention. We are a stellar property management service company in the Aurora area and proud members of the NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Aurora, call 720.989.1996 or please contact us.
