MINDSET
BACK TO BASICS
Identifying a Great Rental Property Investment
A BACK-TO-BASICS APPROACH FOR FINDING YOUR NEXT RENTAL
by Abhi Golhar
eal estate investing has been a hot topic for what seems to be over a decade now. There are countless
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or green belts. The location saying began as a description of the most important aspect of buying and selling properties. Renters want to live where buyers live. They have most of the same selection criteria, except they want or need to rent instead of buy. Find the areas where people want to buy homes, and you will probably find them popular with renters as well. Ready to Rent This discussion isn’t of fix-and-flip or rehabbing homes for rental but is instead for the average investor who wants to buy a ready-to-rent house. Shop the market of homes listed with real estate agents, but often they are priced at the top of the market. If you can wait out one that isn’t selling, you usually can get a better price that may meet your cashflow needs. Otherwise, you can watch online sites like Craigslist.com and others to find FSBO (for sale by owner) homes or look to credible turnkey companies. Your ability to locate distressed owners can produce a viable investment long-term.
books, courses, and television shows about different real estate investment strategies you can use to win. Owning rental properties is the foundation of several approaches. For long-term wealth and a lavish retirement lifestyle, getting back to the basics of building a portfolio of rental properties is the key. What makes a great rental property investment? For this discussion, single-family rental homes will be the asset class. Here are the most critical considerations for selection and acquisition of the best single-family rental homes for a long-term wealth portfolio. Location The old real estate saying about location, location, location rings true for rental properties as well. You want to find homes in popular residential areas; sometimes they are related to a nearby major employer. At other times, it is about the age of the neighborhood and the style of homes, or the proximity of the area to a major city
94 | think realty magazine :: august 2020
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