If you’re thinking about investing in the DFW or the surrounding areas, there are a lot of wonderful opportunities in our market. Prices are still low enough and aren’t out of reach, and the values are appreciating again. Rents have been rising, and the tenant pool is increasing.
At 3G Properties Group, we assist clients with buying and selling investment properties as well as managing them. Today, we’re sharing some of the advice we give to our investors who are looking to purchase a new property.
Size Matters
Think about the size of an ideal rental home before you buy. To get the most rent and the biggest return on your investment, look for a single family home that has three bedrooms and two bathrooms. You want a square footage of around 1,500 – 1,800 sq. feet, and yards and garages are also helpful when you’re renting to good tenants.
Consider the Price
Think about your investment goals when you’re negotiating the price of an investment property. If you’re interested in short term cash flow, you’re going to need to make sure that the numbers make sense so your expenses aren’t higher than your potential income every month. When long term gains are more important, you’ll need to analyze how much the home will increase in value. Never pay more than you’re going to be able to earn through rent and appreciation.
Property Location
High quality tenants are looking for homes in nice neighborhoods with good schools. They’ll want to be close to work and the interstates, as well as shopping, restaurants, and entertainment. When you’re shopping for an investment property, think about whether tenants will think the home is in the right neighborhood.
Age and Condition
The age and condition of an investment home will have a huge impact on the cost to maintain it. You may have to make some repairs and upgrades before you even put it on the rental market. Factor this into your calculations when you’re deciding whether or not a property makes sense. Working with a professional property manager who knows the local market can be a huge asset when you’re looking for an investment property to buy. If you’d like to hear some of our ideas, please contact usat 3G Properties Group.
