Rental properties can be a great long term investment! For optimum ROI, you need to be savvy about location, realistic about expected rental income and understand your costs.
- Location – Is the home in a sought after area? What is the growth forecast for the area and are there other expected development projects that could have a positive or negative impact?
- Rental Income – What are comparable rentals nearby going for? If in a planned development, you also need to consider association dues.
- Costs – Will the home need updates or maintenance before you can rent it? Always good to get quotes on projects!
As an example, my current listing on 2194 Pineola Bog Trail, Apex is in a growing, thriving area of Apex. Current rentals in the town home development average around $1800/month, and there are association dues. This home is pristine – no updates needed! It does have a floored, plumbed unfinished attic so that could be finished if you wanted a larger rental unit.
Of course this is just an overview of the many factors to consider before purchasing a rental investment. I’m always happy to help with your questions!