Six Suggestions for Building a Profitable Rental Property
Building a rental property is a great way to generate income. Getting started requires research and often, a significant investment. According to home builder, Henry Walker, (http://www.henrywalkerhomes.com/), there are many factors to consider prior to beginning construction on the property. Six factors to consider include the neighborhood, property taxes, schools, crime, jobs and rent.
Location, Location, Location
The neighborhood in which you build a property is very important. You will learn what types of tenants there will be along with how often you face vacancies. For example, if you build a property near a university, your main chances of tenants will be students. The downside of that is there will be a vacancies due to the fact the students will return back home in the summer.
Death and Taxes
Property taxes are to be of attention because they are not the same everywhere you go. As someone planning on building properties, you want to be aware of how much you will be losing to taxes. Go to the town’s assessment office and ask homeowners in the community about the tax information. If the neighborhood is a great place, high property taxes may not be a bad thing.
Take You to School
Building a property by a school can be profitable or not. Check the quality of the school because it can affect the value of the property. A school that has a poor reputation will reflect your property’s value poorly. The best thing to keep in mind is to build by an excellent school if possible.
Grand Theft Auto
It’s important to never build a property where the neighborhood has a high crime rate. Investigate looking into vandalism rates, serious crimes, petty crimes and any recent activity. The best way to find this information is to go to the police. Ask about the crime statistics and see how often they are present in the neighborhood.
Follow the Jobs
Tenants are attracted to locations where there are growing employment opportunities. Go to the U.S. Bureau of Labor Statistics or to the local library to find this information out. You can be reassured that workers will flock to the area if there is a new major company moving to the area.
Last but not least, you need to know what the average rent is in the area where you want to build property. Look up the area and see if there are going to be any major improvements or a rise in property taxes. Being informed will allow you to prevent any bankruptcy later on and help make the building of your property be profitable.