Looking for a good investment? Experienced real estate investors know the tell-tell signs of a rental property that will provide the best possible return on their investment dollar for their short-term cash flow and long-term passive income.
So why not turn to the experts who follow a recipe for success? We’ve gathered the key ingredients that you need to know to determine if a Sun City rental property is a good investment.
Know the Market
Strong familiarity with the Sun City real estate market, future city plans that influence the property’s value in the area you’re interested in, and any economic developments that would add significant job growth. Plans to develop shopping, medical, business centers, parks, or schools are positive signs of anticipated expansion and indicate further demand for rentals nearby. Long-term tenants like families seek out rentals near the best schools, and while the monthly cash flow is a bit lower, turnover is much less frequent than with shorter-term rentals.
Right Neighborhood
One factor that is just as important as the property itself when considering a Sun City rental property is the neighborhood. The neighborhood can say a lot about the quality of the property and its potential for future investment returns. It’s important to do your research and make sure you’re comfortable with the area before investing. One thing to look for in particular is the crime rate. If you’re uncomfortable with an area’s level of crime, it’s best not to invest there. You also don’t want to live near any sources of noise or smell pollution. The better the neighborhood, the better the chance that your rental property will be a success.
No Major Repairs
One of the things it’s helpful to know about potential rental property investment in Sun City is to avoid properties with significant problems, especially if you lack construction experience and are at the start of your investment business journey. While a fresh coat of paint and some new flooring or countertops can quickly improve a property, you need to ensure that the foundation beneath your feet is solid. Without a professional inspection, you should be ready to take on the financial risk of major structural repairs and have the time and extra funds available for rehabilitating a property.
Available Rentals Nearby
You should also know if the rental property in Sun City is the vacancy rate in the area. If vacancy rates are high nearby, this is an indicator that there is little demand for rentals, and you should move on to another section of Sun City.
Resale Value
Long-term value is a critical factor when you’re evaluating rental property in Sun City because well-researched investments will provide you with a comfortable cash flow in your retirement. In addition, a history of solid home sale values and long-term rental income for the area, or hints that show a neighborhood is in the early stages of revitalization, demonstrate the investment will hold value. Finally, long-term value also comes into play when your investment strategy calls for you to cash in on your equity in the future and exit the investment.
Cash Flow Potential
The bottom line for investors in rental property in Sun City is the potential cash flow. Experienced pros, like the professional investors at Stars and Stripes Real Estate, know the winning formulas and punch in the numbers before purchasing rental properties. If the gross income minus any mortgage payments and expenses don’t add up to positive cash flow, savvy investors do not buy the property, and it’s that simple.
If you want to find out if a Sun City rental property is a good investment, why not work with a professional investor from Stars and Stripes Real Estate and avoid making costly errors with your hard-earned investment dollars. Don’t forget to ask about our current inventory of the best investment property available in Sun City. Contact Stars and Stripes Real Estate today at (844) 932-8943 to learn more!