Many people dream of having an investment property; it can serve as a short-term rental and your own personal vacation home, it can generate income if you’re able to rent it for more than your mortgage costs, or it can be flipped and sold for profit. But is an investment property really a good idea? Depending on your desired outcome, we think so.
Tips for Choosing an Investment Property
Our number one tip for choosing an investment property is to remember it’s business, not pleasure. While there may be aspects of a rental that don’t appeal to you personally, keep in mind the property is intended to be an investment, not your forever home. Other tips for choosing a rental property in Utah include the following:
- Do Your Research – Take a look at the location, property taxes, potential utilities, and overall cost of living for the area. Is it appealing to potential tenants? Can you financially handle these costs if your property is empty?
- Talk to an Accountant – Doing the math for a potential investment property doesn’t have to be overwhelming; turning to a trusted account to get your finances organized can help you pick the right property, and also help you pick the right mortgage.
- Hire a Property Manager – You’ll benefit from having a licensed professional on your side to help you navigate rental value, perform tenant screening, collect rents, and manage property maintenance. A property manager can also offer insight as to whether or not the rental has the potential to increase in value over time.
Purpose of an Investment Property
Don’t be fooled into thinking an investment property will be a quick way to supplement your income! While it is wise to invest in real estate, it is more of a long-term plan for financial gain. Thankfully, an experienced property manager can help you lay out a plan for your potential rental home so you can see the returns awaiting you in the long run.
Benefits of a Rental Property
While it may seem like a lot of work to own a rental property, there are a lot of benefits. And with the Rhino Property Management team helping you manage all the details, we think the pros outweigh any cons on your list.
- More Stable Investment Market (compared to others)
- Equity – Can be used to invest in additional properties or maintenance of the existing property
- Passive Income
- Flexibility – Rent your home until the market is better for selling at a profit
Whether you’re looking to purchase an investment property or want to work out the logistics of renting your current home after you relocate, Rhino Property Management can help!