It's the real estate mantra we've all heard, "Location, location, location." It's the first factor we think of when buying a home, but is it, or should it be, the first consideration when looking at investing in a rental property?
Renters are much like home buyers, in that location, a general feel for the neighborhood, and nearness of certain amenities are of primary concern when finding a place to call home, even it it's not a permanent one. Of course, each person has a differing opinion as to what factors are most important, and price will be a determining factor for most renters.
Some location factors that make rental properties desirable include the nearness of:
- shopping areas
- transportation
- schools
- neighborhood
- highways
- public amenities such as parks, libraries, etc.
The market value of real estate is intensely local. Look at the average rents in the area in which you are considering purchasing an income property. Is the building in a desirable, or "up and coming" neighborhood? If the numbers pencil out, and you can be fairly certain of a positive cash flow, then you are, quite literally, in business!
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