You likely already know that finding a great investment property for your real estate portfolio is different than finding a home where you will live. There are many various factors to consider when investing in real estate, so let’s take a look at a few pro-tips when it comes to spotting a great investment property:
- Look in areas of Austin that are conveniently located with a high walkability score. While you might not mind living a little outside of town, studies show that many renters prefer to be close to entertainment, retail, restaurants, and things to do. This is a common trade-off for renters–they’ll often rent a property in an area they love, but where they might not be able to afford to buy. Understanding this means you’ll have a “leg-up” with potential tenants.
- Be mindful of local schools. Your tenant audience will likely be young families who prioritize schools in their housing decisions. Additionally, many renters are willing to pay a premium for homes located in areas where the schools are desirable.
- Choose low-maintenance landscaping. While you may love gettin’ grubby mowing the lawn every summer weekend, it’s very likely that your potential renters would rather be enjoying sights, shopping, and meeting up with friends on their days off. With that in mind, select a property with xeriscaping–think flora and fauna found in high desert locations–still beautiful, but they require much less water than traditional lawns. Or, add a tenant perk and arrange for the yard to be cut by a professional every two weeks.
- Set up a team of professionals to help you in the process. Spotting a great investment property is only the first step when it comes to investing wisely in real estate. As you move through your journey, you’ll need a knowledgeable real estate professional–think the Sage Wilson Group! Okay, okay–shameless plug, but you see what we’re saying. All kidding aside, you will want to hire a REALTOR® and a mortgage lender who work with investment properties. Just as the hunt for them differs from a primary residence, purchasing an investment property is also different from an owner-occupied home.
If you have questions about your Austin-area investment property search, or if you’d like to learn more about investing in Austin real estate, reach out to the Sage Wilson Property Group, or schedule a complimentary Investor Consultation by filling out the short form below. We’re always happy to help, however we can.
