3 Signs That Your Home Would Make A Good Rental Property
Q: We’re moving to a new home because our family has grown and we need more space. We have the means to buy our new home and keep our existing home as a rental–would it make sense to do that? Wendy, Penns Grove, NJ
A: 1. You can verify your home would generate lots of good tenant prospects. Tenants want the nicest place to live they can find just like homeowners (good schools, low crime, access to transportation are normally a plus). It’s a good idea to test the market with a rental ad
2. Positive cash flow. Owning any property, particularly a rental will generate expenses as well as capital improvements. Positive cash flow if put aside for a rainy day will create a financial cushion and make it easier for you to pay for expenses and capital improvements over time.
3. Lots of local jobs near property. Income drives real estate more than any other factor. Your tenants need jobs so they can pay you rent. The more good paying local jobs there are near your home, the higher the likelihood that your tenants will be good long term paying tenants.
Thanks for your question, Wendy. For more real estate information and tips visit my blog at geraldlucas.com.