If you are looking for a good investment to buy so that you can use it as a rental property, you must keep in mind a few things to make it a lucrative business decision for you.
- Prequalification
Check with your mortgage broker before you take the dive to invest. Mortgage programs are constantly changing. Don’t assume because you have a good income that you will automatically qualify for an additional mortgage or property.
- Fixer Upper or Newly Renovated
Depending on your cash flow or when you want to start renting, you first decision is whether you plan on fixing your property or you want to start renting right away. Either way you go is your decision– do the upgrades yourself or you may want to earn rental income right away.
- Style of Home
Next decision is perhaps what type of home you want: single, semi, condo or town. All these can provide rental income but some may be easier to rent than others. A small condo may appeal to new renters or small families whereas a larger home will appeal more to family environment. The larger the rent, sometimes may be a little harder to get tenants.
- Location, location, location
One of the hardest decisions is where to buy your property. Depending on the neighbourhood, you will attract different types of tenants. You may wish to check out if there is a lot of crime in a specific neighbourhood also. If you wish to rent to students, you will want to buy in the area of colleges or universities. If you want to attract families, it might be better in the suburban neighbourhoods.
- Listings
Our Anne Winch Ottawa Real Estate Team can help you locate a desirable rental property. You may not want to locate in an area that has a lot of vacancies or properties for sale. This may be a red flag or it may just be a high turnaround in an area. Sometimes a high vacancy area will in turn cause you to provide cheaper rent. We can vet properties for you to save time and get you started right away!
- Timing
Our Winch Walton Team can also help you find those good “buys” before it hits the internet. Timing is of the essence, so if we find some good properties, you may have to act quickly as they are often the ones sold the quickest.
If you have any further questions on how we can help you find a rental property, just contact us directly for further information.