Investing in North East Mesa
Currently our economy is predicted to enter a phase of stagflation, as inflation rises, real estate properties are a fantastic way to hedge against inflation. An added bonus is that the risk associated with real estate investing is minimal compared to other types of investments. Combine this with the highly competitive yields that property investments have to offer and you will wonder why you have not invested in real estate a long time ago.
However, in order to make your investment a success, you have to buy the “right” property.
Your Coldwell Banker North East Mesa realtors can assist you in the search for the right rental property, while offering professional pointers to maximize your investment output.
Ron and Debbie Brown have helpful tips to consider when researching rental income and investment real estate.
- Neighborhoods: Consider the neighborhood the property is in. The type of neighborhood you are buying into will clue you in on what type of tenants your property will attract and also how often you may have to face vacancies. Additionally, desirable amenities can also be pointers as to how much rent you will be able to charge. Purchasing a property near a university will lead to a bigger tenant turnover and vacancies than a home in a suburban neighborhood would, and will most likely influence how much rent you can expect.
- School districts: If your future tenants have or are intending to have children, a real estate located in a great school district will be a hot commodity. Poorly rated school districts might lower your monthly cash flow and devalue your real estate property.
- Property Taxes: Property taxes vary by location and can detract your investment significantly. Unless you are looking to buy in a top-notch community, trying to attract long term tenants, you will want to check with the city’s assessment office or chat with locals about property taxes.
- Crime: It goes without saying that buying an investment property in a neighborhood that is known for high crime activity, or constant police presence will not get you the cash flow you were hoping for.
- Jobs: Rental properties in proximity to new or existing big companies can be a good thing under certain circumstances. Depending on the company, real estate prices can rise or fall, so make sure to do your research.
- Building Permits and Future Development: New growth in condos, businesses, or malls are usually indicators for up-and-coming neighborhoods. However, new housing means that there is a lot of competition trying to draw new renters.
- Insurance: Natural disaster areas will require added insurance policies that can take away a big chunk of your rental income.
- Vacancies and Listings: If a neighborhood as an unusual amount of vacancies or listings, it could either be a seasonal issue or signify a neighborhood that has lost attractiveness to renters and buyers. Both will impact how much rent you can charge and how big chances are to find a suitable tenant.
Investment real estate can be a fun way to some extra income and to plan for the future. But it is essential to do your research. Here, at Coldwell Banker North East Mesa, Ron and Debbie Brown not only know the area, they are seasoned Las Sendas realty professionals who can guide you through your investment property search process and will make sure that you end up with an investment that is more than worth it.