If you have always thought it would be neat to own rentals and the time has come for you to find your first one, then you need to make sure you do everything in your power to purchase rental properties that will offer you the best experience possible. Going with a single-family residence is a good idea as a beginner in this industry. It means you can start out slowly, with just one unit. You can move onto multiple units and apartment complexes once you have more experience. Here are some things you will see in a single-family home that will make a good rental:
Quality construction: When you are looking at a single-family residence that you have hopes of turning into a rental, you need to make sure it is a home constructed to hold up well. If the home has been constructed with budget-saving materials and appliances, then you can expect to get a lot of calls for repairs from your renters and you can expect to have to put more money into it each time you have a family move out and need to get it ready for the next family.
Family-friendly neighborhood: You will quickly learn that a large number of people who are looking to rent single-family homes are small- to medium-sized families. This means a house that is situated in a residential neighborhood is the best way to go when looking for a home to transform into a good rental property. It's riskier to go with homes on busy streets, in rural areas, and in retirement communities when you plan on using the home as a rental property.
Low crime area: When you have a rental, you will be able to rent it out in a higher crime area, but the chances also increase that you are going to end up dealing with problems like vandalism or even squatters who move into the home when you have it vacant between renters. Also, you will be at an increased risk of renting to people who may end up giving you problems and who might have a hard time paying their rent. This is why it's best to purchase a home that is located in an area that has a lower crime rate.
Looking for a single-family residence that meets all of the criteria listed above will increase your chances of doing well with that rental property.