Choosing the right rental property isn’t really all that different from choosing the right home for yourself. But there are some differences. With that in mind, let’s go over some of the big issues.
You want the home to look good in the marketing picture. A house framed by trees, but not covered up by them, looks great. A nice yard. Fenced really helps.
Again, a prospective tenant’s first look is probably through pictures on some online advertisement. Clean wood floors or carpeting, clean walls or freshly painted and the kitchen and baths that are in line with the price range. For a $900/mo rental property you really don’t need granite counter tops, 20″ tile floors, etc. What you do need is something that has been updated in the last 10 years. No avocado counter tops, almond appliances,etc. But if your income property will rent for $1,800/mo, it better be as nice as the luxury apartments right around the corner for $300/mo less.
Functional Room Sizes
A 9′ x 9′ bedroom isn’t much of a bedroom. Is it?
Here in Kansas City, we have basements and foundations that can move. Your best house has a perfect foundation. That’s usually a newer house at a higher price tag. I can usually live with some movement if it’s been addressed professionally.
Water can destroy a house…and the solid foundation. Pay attention to this.
Is the neighborhood solid? Is it on the come? Or is it on the decline? I’m looking for solid or on the come. I don’t want investment properties that become melting ice cubes.
Get a good, boring house. Let some of these “flipper” guys take the risks on the tough houses. Be patient. Choose the right rental property and your real estate will help you get to that “Retirement worth having.”