Considering investing in rental property? Whether you have your sights set on a nearby neighborhood or a city across the country, it’s imperative to research before you buy.
Making the decision based on the facts you have researched ensures that you will get the most out of investing in rental property and sustain a high return.
Fortunately for you, it’s 2018, and there are hundreds of online resources available designed to make the investment process easier. There’s so many it can be overwhelming wondering where to begin, So we have rounded up our top picks of online resources to help you. Use these tips, ideas, and tools when looking at investing in rental property.
If you plan to invest in a rental property located in a different city, you need to know the potential rental income of that area. The easiest way to find out that information is through looking at reports available to you.
Lending tree reports are a great place to start. They share rental trends, best cities to invest in and even touch on short-term rentals. If you’re not tied down to one specific location, you should target an area that’s identified as offering the highest ROI.
Regardless of if you want to invest in vacation rentals, homes or apartments, Snapinspect suggests checking all types of housing reports out. You want to understand the markets to the best of your ability. If your rental drys up and fails in your new area, its reassuring to know that you have a backup plan/ area.
Similar to rental reports, firms publish annual rental trends that are filled with insight on what areas are set to flourish, emerging trends and some even offer advice on investing in rental property. For example, this 2018 residential sales report indicates which areas are most sought after by dividing them into focus areas (suburbs).
Remember, it’s just as important to check the trend reports curated by consumers as well. For example, The 2018 WEX consumer travel trend report. This report indicates that “Bleisure travel” (business and leisure) will rise in popularity significantly in 2019.
This would suggest that investing in rental property to become Airbnbs located in growing up and coming business areas could be a wise decision.
Reach out to experts in your area of choice that have a solid understanding of the current rental market. Connect with a professional who can supplement your findings by giving you insights on home prices and the best areas to invest in rental property.
The more people you connect with, the better. Attend local workshops, information events and even reach out to the local housing authorities and groups. Rental regulations differ tremendously from different areas, states, and even countries.
Asking local experts provides you with additional knowledge that can be the difference between your rental investment property creating positive or negative cash flow.
Tenant Research Tool’s
Nextdoor: This is a social networking app designed for neighborhoods. (Facebook for neighbors) As a potential investor you can put in the address you are considering and see what has been talked about, reported and any issues the area may have. It’s also a simple way to get a feel for what the community is like.
CoreLogic: “Information is at the core of smart decision-making” CoreLogic provides information intelligence you need to find new prospects and stay informed on critical drivers within the housing economy.
Walkscore: Walkscore ranks the walkability of your potential rental property. Just enter the address, suburb or city name and hit enter. You can also compare different cities against each other which can be extremely helpful if you are stuck between investing in two areas.