Skip to main content

6 Things To Look For In a Southwest Michigan Rental Property

When you are ready to purchase your next Southwest Michigan rental, there are a few things to keep in mind when looking for a property. Here are six things to look for in a Southwest Michigan rental property:

Location

Having a rental property in a great location means you will have plenty of tenants to choose from. Your property will always be in demand, and you should experience low to no vacancy rates. To be safe, of course, you will still need to factor in the suggested vacancy rate to your rental proforma. Great rental properties are usually near high performing school systems, grocery stores, shopping, entertainment, and may also be a short drive from major highways or other large attractions in the state. 

Cash Flow & Growth Potential

A great rental property will have a positive cash flow every month with minimal expenses and minimal vacancy. Your rental property will also be great if it has growth potential. If it is in a great location and demand is high, you will be able to justify raising the rent especially if one tenant moves out and another is lined up to move in. Make sure you keep an eye on the Southwest Michigan market rental rate and stay close to that. If you mark your rent too high, you may deter some tenants.

Property Condition

A great rental property will be in excellent condition. You may have to do some upgrades to the kitchen or bathrooms at the time of original investment, but overall it will be worth it. Tenants are willing to pay for quality. Also keep in mind, the better the condition of the property, the fewer repairs that will need to be made, and less likely the tenants will take it for granted. In general, they will work to keep the property in great shape for you!

Property Management

A great rental property takes great property management! You may want to consider hiring a property management company to turn your investment into a great rental property. For help selecting a great property manager in Southwest Michigan or MI, give I Buy SW MI a call at (231) 392-3262 to discuss your needs and intended level of involvement. You want to make sure you maintain the integrity of the structure and surrounding yards, all major appliances, and HVAC systems. 

Property Value

A great rental property will be valued at more than you paid for it! In order for this to happen, you may have to purchase your rental as a distressed property and put some money into it. If it’s in the right location with the right demand, your property value should slowly rise and make for a great profit in the future! Just make sure you hang on to it for more than a year, the longer the better for reduced capital gain taxes. When this happens, it makes for a great exit strategy.

Market Trends

It is important to keep an eye on market trends for your rental property in Southwest Michigan. You want to make sure your rental is keeping up with the rental rates and property values. This will help your property make as much money as possible for a great rental property. This will also let you know when the best time to sell your investment is. If the market starts taking a downward turn, you want to make sure and sell your rental property while it will still make you a profit!

When you work with I Buy SW MI, we take the guesswork out of the buying process. We research our properties and make sure they will fit your investment portfolio. Give us a call today at (231) 392-3262 to discuss these six things to look for in a Southwest Michigan rental property.

Labels:

Comments

Post a Comment

Popular posts from this blog

4 Common Mistakes to Avoid When Buying Land In Muskegon MI

  Astute investors in the real estate realm who aim to broaden their investment portfolios comprehend the promising returns and countless innovative applications that land can present. Frequently, these enterprising investors merge their diverse business ventures with real estate investments to not only generate wealth but also expand their enterprises by developing a tract of land. 1. Neglecting to conduct proper due diligence ranks among the most crucial errors to steer clear of when purchasing land in Muskegon MI. This entails thoroughly researching the property before presenting an offer, encompassing an assessment of zoning and land use regulations, environmental considerations, as well as the availability of utilities and access. 2. Lacking a well-defined investment strategy stands as another prevalent error—failing to establish a clear plan before acquiring land. It is vital to determine your objectives, whether they involve long-term landholding or targeted developme...
Post a Comment
Read more

Questions to Ask Yourself Before Selling Your House Fast

  Selling a house fast can be a daunting task, especially if you're not prepared for it. Before putting your house on the market, it's important to ask yourself a few questions to make sure you're ready for the process. Here are some questions to consider: Why do I want to sell my house fast? Before making any big decision, it's important to know why you're doing it. Is it because you're moving to a new city? Or do you need the money for an emergency? Understanding your motivation can help you make the right choices throughout the selling process. How much is my house worth? Knowing the value of your house can help you set the right price and negotiate with buyers. You can hire a real estate agent or use online tools to get an estimate of your house's value. What repairs or renovations does my house need? Before putting your house on the market, you should take care of any necessary repairs or renovations. This can help increase the value of your house and a...
Post a Comment
Read more

How To Sell Your House Fast in Southwest Michigan To Save Money and Time

Do you need to sell your house fast in Southwest Michigan? Doing so will help you to save time and money when all is said and done. Keep reading to learn how to sell your house in Southwest Michigan so you can move on faster and with more money in your pocket.  Many people find themselves in a situation where they need to sell their houses fast, without any delays or extra costs. People dealing with foreclosure, divorce, repairs, or an inherited property may not have the time or money to wait around while a buyer is found. Below are a few tips to help you sell your house fast in Southwest Michigan, ultimately saving you time and money when all is said and done. If our team can help you in any way or if you have questions about selling your house in Southwest Michigan, please feel free to reach out! Price The House To Sell If you want to sell your house fast in Southwest Michigan and you want to do it the traditional way, you’ll need to price the house to sell. This...
Post a Comment
Read more