Have you been thinking about how nice it would be to be a Schenectady landlord and start receiving those rent checks in the mail each month? If you are interested in entering the world of Schenectady real estate investment it is important to educate yourself before jumping in. Choosing the right property can be the difference between your success or failure with your new endeavor.
Look for these 4 things before place an offer:
Many potential investors think that it is best to find the diamond in the rough that will become an incredible Schenectady property after a major renovation. They pride themselves in being able to see the potential in a piece of property.
While this is one way to go about investing, if you are looking to become a Schenectady landlord, your best option is to find a property that is profitable from the start. You will not be able to collect rent checks if you have the house torn apart to remodel for months at the start. Find a house that is ready for you to rent from the day that you have the key in your hand.
A popular piece of advice in the Schenectady real estate renting business is to purchase a property that will allow you to rent it for 2% of the price that you purchased it for. By doing this you are assuring that your property will not only cover your expenses, but leave you extra as well.
When a Schenectady neighborhood has homes that are moving faster and faster off the market it is a good indicator that this is a desired area to live in. Purchasing a property in these areas usually will result in easily being able to find renters that are searching in your area. When houses are starting to sell faster in an area it usually leads to an increase in the asking price that sellers are setting. Watching the Schenectady market to purchase a house as the DOM drops, but before the prices go up is the best time to come in.
While it is important to run all the numbers before placing an offer, you also want to check out the Schenectady neighborhood. What does the area have to offer potential renters? Are there good shops and restaurants close by? The millennial generation likes to live in neighborhoods that are walkable and where they can easily walk to anywhere they need to go. Check the schools, the stores, the restaurants, and other activities to see if they will appeal to renters.
If you are looking at a Schenectady property that already has a tenant in place you will want to do your own research. It is easy for the current landlord to tell you that they are good tenants who are never late with their payments, but you need to check it out for yourself. Invest the money into pulling a credit report and running a background check. Make sure you familiarize yourself with the person living in the space the same way you would if you were making the decision on renting it to them yourself.
Keeping these four things on mind will help you find a property that will jumpstart your dreams of being a Schenectady landlord. Finding a profitable house in a good neighborhood will bring renters to your door. Once you set your standards, don’t be afraid to walk away from a potential deal if it isn’t fitting what you are looking for.