Buying Rental Properties - Some Tips

Buying rental properties can be a great way to build your wealth. However, as in most real estate investment, it is sometimes difficult to know if you've found a good deal - especially the first time. Here are some things to look for to be sure that rental is a great investment.

1. Location. If traffic is heavier, rentals are easier to rent. A sign will often pull more response than an ad in the paper. If it is a nice locale, it will usually rent faster. This is also true of places close to amenities.

2. Numbers. Run the numbers. Get every last expense figured into your calculations, and be sure that you will have positive cash flow from the start.

3. High home prices. Look in towns with high home prices, as this creates rental demand. What do people do when they can't afford to buy? They rent.

4. Low maintenance buildings. Avoid cedar-shake roofs, and wood-sided buildings. Look beyond current expenses to how much maintenance the building will need. Low maintenance means less headaches and more profits.

5. Good rental history. Ask to see the rental history. Note how long residents are staying on average, and how well they pay on time.

6. Below market rents. Buying rental properties with below-market rents means you get to raise rents. Raising rents means you imediately raise the value, because rental property values are based on income.

7. Complies with zoning and fire codes. Have it inspected, and ask local officials if there are any problems.

8. Less than 20 years old. This is somewhat arbitrary, but if you limit your search to newer buildings, you will be less likely to have building code and maintenance problems.

9.Owner/manager that is out of state. These properties are often the best deals, because it is tough to manage a property from far away. An out of state seller is often more concerned with a quick sale than a high price.

10. Neighborhood is stable or improving. Stable is okay, but if you can buy in a neighborhood that is improving, you'll rent the units more easily, and therefore get automatic appreciation in value with time.

Posted by Elaine Johnson on December 13, 2008 at 12:00 AM

About Elaine Johnson
Elaine Johnson is affliated with RE/MAX Classic Realty, which is located in Las Cruces, NM. For further assistance please use the contact information located on the right.

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Local Information for Las Cruces, NM

Latitude: 32.319693 -- Longitude: -106.765157

ZIP Codes for Las Cruces, New Mexico	88001 88002 88003 88004 88005 88006 88007 88011 88012
Area Code for Las Cruces, New Mexico	505
Time zone for Las Cruces, New Mexico	MST

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Unlike many cities its size, Las Cruces lacks a true central business district. Most Las Crucens would agree that the modern "heart" of the city, where most stores and restaurants are located, is the area running down Telshor Boulevard and Lohman Avenue. Las Cruces' only shopping mall and a variety of retail stores and restaurants are located in this area. However, the historic downtown of the city is the area around Main Street, a six-block stretch of which was closed off in 1973 to form the "Downtown Mall", a pedestrianized shopping area. The downtown mall has a farmers market each Wednesday and Saturday morning, where a variety of foods and cultural items can be purchased from small stands that are set up by local farmers, artists, and craftspeople . It also contains many businesses, churches and theaters, which add a great deal of character to Las Cruces by continuing to exist in the historic downtown. Las Cruces is also the home of New Mexico State University. -- Source: Wikipedia.com

New Mexico 2000 Census Population Profile Map

	Las Cruces	New Mexico	United States
Population	74,267	1,819,046	281,421,906
Median age	31.2	34.6	35.3
Median age for Male	29.5	33.4	34
Median age for Female	33	35.6	36.5
Households	29,184	677,971	105,480,101
Household population	71,868	1,782,739	273,643,273
Average household size	2.46	2.63	2.59
Families	18,130	466,515	71,787,347
Average family size	3.05	3.18	3.14
Housing units	31,682	780,579	115,904,641
Occupied units	29,184	677,971	105,480,101
Vacant units	2,498	102,608	10,424,540

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Buying Rental Properties - Some Tips

Local Information for Las Cruces, NM

Latitude: 32.319693 -- Longitude: -106.765157

Enter our Photo Sweepstakes and Win $200 for your Las Cruces photos!

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