I hear a lot of investors say they look for rental properties where the monthly rent will be at least 1% of the purchase price. In case you are bad at math - if they buy a $100k home, they want to be able to rent it for $1,000/month. When I first got into the business for rental properties, I didn't know anything about this rule, and I spent $160k on one home and $170 on another. The monthly rent for these two homes is $1,330 and $1,300 respectively. Some might say those numbers wouldn't be satisfactory for them, but I think it's been an amazing investment.
My rentals STAY rented. I keep them in great condition. They are close to a university, and I always have my pick of tenants with a waiting list of people to choose from. I don't ever have to worry that they will sit empty while I look for a tenant. I think there is something to be said for that kind of peace of mind.
It's like a blue chip stock. They are a bit more expensive, but they are solid companies that are unlikely to go under. It's safe, but it can still be very lucrative.
If you are looking for an investment property in Raleigh, NC, come talk to me. I know some great areas to buy in!
Comments(0)