We are talking today about how to find a good investment property in the twin cities, and if you already have a property, we’ll tell you what makes it great and appealing to renters. If you are looking for a new investment, location is key. Talk to professionals who understand the best markets to buy new property. You want to buy in a place that has a strong rental market and will provide you with a great value for your investment.
I like three bedroom two bath properties, and many renters do as well. Two full baths are not always necessary. A half bath or three quarter bath is often okay, depending on the size of the house and the number of people who will live there. These properties are easier to rent, and when it comes to resale, you will certainly have an easier time getting a buyer when you have a minimum of three beds and two baths.
A good investment property does not have to look perfect, as long as you are willing to fix it up. Cosmetic issues are those things that can be easily or inexpensively fixed. They can often have a huge impact on whether you are able to rent the home quickly. Change the carpets or the flooring if you need to, and give the place a fresh coat of paint. These are great investments you can make in your property that don’t cost a lot of money or take a lot of time. It will help you appeal to the rental market as well. Renters want clean and updated homes to live in.
There are different impacts on your investment property when you pay with cash versus financing the property. Remember that you cannot plan on appreciation when it comes to making an investment in property. In our market, properties can go down in value, as we learned recently. Look at your investment property from the standpoint of cash flow as well as other available benefits. For example, if you are financing the property, principle reduction is a great benefit, and there are tax advantages for investment property owners too. Talk to your tax planner so you know which tax benefits will apply to your investment property.
These are some of the things to look for when buying an investment property in Minneapolis. If you’d like additional information, please contact us at RP Management, and we’d be happy to provide any assistance we can.