Is owning a rental property worthwhile?
In the appropriate situations, with time, and depending on your financial situation and ambitions, it can be.
A rental property can yield a consistent return over time if you can bring in even a few hundred dollars per month after all expenses, including taxes (on the income and local property), have been paid, and you’ve put money into a reserve fund for unanticipated costs. If the property is lucrative, having that cash flow provides you with the option to either acquire more of the same type of asset, which is real estate or to buy other types of assets when real estate is out of favor, which is advantageous.
If you’re thinking about investing in rental property in Dallas & Fort Worth or anywhere in the 75063 zip code area you might be wondering what makes a good rental property in Dallas & Fort Worth. We’ll share with you 3 of the factors to see if rental properties are right for you…
Rental properties can be a great investment. From the cash flow to the security of owning a real asset, real estate investors have known for a long time that rental properties are an amazing asset to keep in your portfolio. But one question persists that needs to be answered before you invest, “What makes a good rental property in Dallas & Fort Worth?”
After all, you don’t want to invest in ANY property – you want to invest in the right one! So, here are 3 of the best factors that make up an ideal rental property in the 75063 zip code and surrounding area.
What Makes A Good Rental Property In Dallas & Fort Worth?
#1. Strong House, Cosmetic Upgrades Only
Unless you’re handy, or have a lot of experience, you may not want to invest in a house that requires a lot of effort to get it ready to rent. After all, every day that you delay renting is a day that you don’t get the cash flow you desire. A strong, well-built house that is free of problems and only needs cosmetic upgrades is a great place to start. Yes, you might pay a little more up-front for this kind of property but you’ll save time and money afterward in getting it ready to rent.
The three most crucial elements in a real estate transaction are location, location, and location, as you have certainly heard many times by this point. Avoid homes in undesirable neighborhoods and give preference to those that are located in areas that are established or obviously developing.
What characteristics distinguish an excellent location? Obviously, you want to stay away from markets that are in decline where housing prices are static and residents are leaving. Give precedence to parts of the city where real estate values are rising, investors are making investments, and housing demand is rising.
Numerous adjacent attractions, top-notch schools, an expanding job market, a low crime rate, upcoming planned developments, a dearth of rental listings, and accessibility to public transit are all indicators of a hot rental market.
#3. Good Rental Market
You also need to make sure that this is a good rental market. The truth is, not all markets are good rental markets. In some areas, everyone buys and nobody rents; in other areas, everybody rents but they move too much. A good rental area is one where there are plenty of long-term renters.
These three factors exist in rental properties throughout the Dallas & Fort Worth area. Careful consideration is required at every turn. Never assume anything or take anything for granted.
You may make wise choices that will improve your finances in the future with the aid of first-hand knowledge and verifiable data.