Looking for a good investment? Experienced real estate investors know the tell-tell signs of a rental property that will provide the best possible return on their investment dollar for their short-term cash flow and long-term passive income.
So why not turn to the experts who follow a recipe for success? We’ve gathered the key ingredients that you need to know to determine if a Oklahoma City rental property is a good investment.
Know the Market
Investors and buyers need to know the market. But, you may ask, “What is the real estate market?”
The real estate market consists of all residential and commercial properties that are available for purchase or rent at any given time. Residential properties typically range from one-bedroom apartments to large homes ideal for families. Commercial property usually refers to buildings such as shopping malls, warehouses, office space, and retail space.
When considering investing in an area’s real estate market , it helps to understand what factors make a neighborhood desirable . Ask yourself: What amenities does the location offer? Are there good schools nearby ? How about shopping and access to major roadways? What other attractions draw people to this neighborhood? Who lives in the community now?
If the place where you want to invest is in a neighborhood with limited access to resources or faces major problems , it will have trouble attracting or keeping residents. It’s important that an area has good job opportunities, quality schools, and safe streets. When these needs are met, there tends to be more demand for property rentals . This can translate into higher rental rates for investors who buy properties in the right locations.
Another thing to look for in a Oklahoma City rental property to help ensure that you’re making a sound investment is to find the right neighborhood. You, or a trusted representative like the professional investors at Integrity Home Buyers, must go to the physical location and have a good look at the property, spending time outdoors to ensure no foul smells or disturbing noises are coming from any surrounding properties. Another essential factor to concern yourself with as a responsible landlord is the crime rate in the area.
No Major Repairs
One of the things it’s helpful to know about potential rental property investment in Oklahoma City is to avoid properties with significant problems, especially if you lack construction experience and are at the start of your investment business journey. While a fresh coat of paint and some new flooring or countertops can quickly improve a property, you need to ensure that the foundation beneath your feet is solid. Without a professional inspection, you should be ready to take on the financial risk of major structural repairs and have the time and extra funds available for rehabilitating a property.
Available Rentals Nearby
You should also know if the rental property in Oklahoma City is the vacancy rate in the area. If vacancy rates are high nearby, this is an indicator that there is little demand for rentals, and you should move on to another section of Oklahoma City.
Long-term value is a critical factor when you’re evaluating rental property in Oklahoma City because well-researched investments will provide you with a comfortable cash flow in your retirement. In addition, a history of solid home sale values and long-term rental income for the area, or hints that show a neighborhood is in the early stages of revitalization, demonstrate the investment will hold value. Finally, long-term value also comes into play when your investment strategy calls for you to cash in on your equity in the future and exit the investment.
Cash Flow Potential
The bottom line for investors in rental property in Oklahoma City is the potential cash flow. Experienced pros, like the professional investors at Integrity Home Buyers, know the winning formulas and punch in the numbers before purchasing rental properties. If the gross income minus any mortgage payments and expenses don’t add up to positive cash flow, savvy investors do not buy the property, and it’s that simple.
If you want to find out if a Oklahoma City rental property is a good investment, why not work with a professional investor from Integrity Home Buyers and avoid making costly errors with your hard-earned investment dollars. Don’t forget to ask about our current inventory of the best investment property available in Oklahoma City. Contact Integrity Home Buyers today at (405) 367-6048 to learn more!