Are you in search of a rental property to provide an additional source of income? Making a smart purchase requires identifying what you need to see the best return on your investment. “Every state has good cities, every city has good neighborhoods and every neighborhood has good properties, but it takes a lot of footwork and research to line up all three” (Beattie, www.investopedia.com).
When tenants are looking for a rental, they consider the neighborhood it’s located in and the house’s orientation to schools, jobs, and amenities. Finding a property that matches the desires of your ideal tenants can reduce regularity of vacancies.
On the flip side, as the property owner, it’s important to understand the expenses associated with the property: taxes, insurance, remodel and repair. The good news is that repair and maintenance expenses are tax deductible. (Learn more about Maintenance Expense Tax Deductions on Rental Property). Knowing your potential rental rates as well as the potential for securing building permits for future development can help solidify whether or not the property will offer long-term income.
Read more about these concepts on Investopedia here http://www.investopedia.com/articles/mortgages-real-estate/08/buy-rental-property.asp