Not just any city can function as a great rental market. Unless you live in a few select cities, chances are the best properties are not in your backyard. So how do you go about finding a rental market that will produce high return on investment?
Certainly, there are many metrics you could consider. However, in this post, I'm sharing what I care about in a rental market and why it matters.
- Landlord friendliness. Unfortunately, legal issues like evictions are inevitable when you own multiple rental properties. Because of this, I aim to invest in states that are protective of landlords. This is one area that is easily overlooked, but can have far-reaching implications.
- Job market. It's important to assess what the job market is like in a city you're considering investing in. Personally, I look for jobs that are American-based. Jobs in hospitals aren't going anywhere. You want your tenants to have consistent work, so this one is important!
- Affordability. I look at the cost to acquire properties, as well as things like property taxes, and how much it costs to hold licenses. Remember, additional costs eat into your ROI, so you want to be careful about how much you're spending.
- Boring appreciation. As far as I'm concerned, slow and steady appreciation wins the race! I don't want drama or overinflated property values.
- Shipping. We live in an e-commerce society. Online businesses like Amazon and Zappos are ever-expanding, so if I notice warehouses and distribution centers, I know that's a great place to invest.
If you're ready to pick up a turnkey rental property in one of America's best rental markets, book a free call with our team!