The decision of purchasing a real estate property to acquiring a rental property calls for detailed research. And when you are an inexperienced investor, the task can become even more stressful. Owning a rental property is a complicated business where investors can experience a series of hindrance that potentially affects their returns. Here we will consider some important factors in real estate investing for rental properties in Houston TX.
The quality of the neighborhood in which you wish to buy the investment property largely decides the type of tenants you wish to attract and how often you will come across vacancies. For example, if the neighborhood resides near a college or university, there is a high probability the tenants approaching you will be students. As for vacancies, your numbers will be likely high on a regular basis, especially in summer (the time when students normally go back home).
It is obvious property taxes are not even around the globe. While as an investor, it is your duty to determine how much rental money you are likely to lose to taxes. The effect of high property taxes can be neutralized to some extent if the neighborhood resides long-term tenants. But both the scenarios do not necessarily run along at the same time. The city’s assessment office is the best place to consult for taxing details and you can also approach several homeowners of that locality.
It’s a common knowledge tenants prefer places that resides near descent schools. After you have spotted a property near a school, the first thing you will want to consider is the quality of that school as this can largely influence your investment value. If the school is not of the right calibre or has poor status, the prices will show your property’s value negatively. Even though the monthly cash is a different thing, but the overall value of your rental property will significantly drop at the time of sale.
Living in a high crime location is surely not what anyone would prefer for themselves and their family. Rather than asking the homeowner who is willing to sell the house to you, go to the police station to inquire about the crime rate and statistics in that area. Carefully examine the figures of fatal crimes, petty crimes, and related trends. Also do ask the strictness of police activity and security in the area.