Metro Atlanta has a thriving rental property market. Renters across the area will tell you that good rentals are hard to find and the great ones are hard to afford. Owning one or more of these properties might be the key to financial freedom, but there are important considerations to make before jumping into the rental business.
How much can you spend?
As with any home purchase, rental or otherwise, determining your price point is the first step in your search. Be aware that the down payment requirement will be higher (usually 20%) because mortgage insurance is unavailable on investment properties. Interest rates will generally be higher on rental properties, too. Carefully consider repair costs now and in the future; if you own a home already, you know that things inevitably break. Be sure to have a cash reserve for repair costs.
Where you buy is so important when it comes to rental properties. Buy in areas with low property taxes, low crime rates, and good schools. Look for a thriving job market and access to shopping, dining, and entertainment. Homes in areas that would appeal to a first-time buyer make great rental properties. Choosing a home in an area where properties have clearly appreciated in value is also important, and your Peggy Slappey Properties REALTOR® is a great resource for that service. It will give you peace of mind to know that your investment will not only bring monthly income, but will also likely sell for a profit when you’re ready to let it go.
Don’t buy a fixer-upper for your first investment property! Start small, and keep it easy. Let your initial investment (the home purchase) be your only major expense. Get a thorough home inspection and negotiate the repairs before closing. Keep monthly overhead low by choosing a newer home that will need fewer repairs over time. Your investment property should be as close to move-in ready as possible. The sooner a tenant can move in, the sooner you’ll realize some of that passive income.
Choose a Practical House
Set aside your personal preferences and focus your search on rental properties that are bright, clean, and affordable. If you love turn-of-the-century architecture, make sure your personal home features it, but buy “basic” when it comes to investment properties. Good appliances, a sound roof, and clean bathrooms should be your major selling points.
Be Ready for Repairs
If you are not particularly handy, you need to be ready with a list of on-call local repair companies. Even if you buy new construction, your investment property will eventually need repairs. Compile a list of technicians to include HVAC service, plumber, electrician, appliance repair, duct cleaning, and professional home cleaning. When your tenant is sizzling in the July heat without any air conditioning, that list will be invaluable.
Not only can Peggy Slappey Properties help you find and buy the perfect investment property, but we can take on the monthly management of that property, as well. We'll place your tenant, collect rent, track down late fees, order repairs, and basically make your life as a landlord as easy as possible. Check out our rental management services HERE and contact us at 770-271-5555 for more details.
Peggy Slappey Properties, Inc. is a Metro Atlanta real estate brokerage celebrating35 years of experience in real estate sales and marketing. From new home construction to resales, we can help you find the home of your dreams. To see our current listings, visit www.psponline.com and call us for expert advice at 770-271-5555. Keep up to date with the latest PSP events and offers by checking in on Facebook at https://www.facebook.com/peggyslappeyproperties and on Twitter at https://twitter.com/psponline.