For those seeking to own a rental home, or a duplex, and rent it out to tenants as a source of extra income, there are plenty of questions to take into account. How much money do you spend purchasing a property? How much should you sink into fixing it up? And maybe most importantly, what area of town do you look for when it comes to having that rental property?
While there are certainly many different opinions about where and how to rent out a property to tenants, location is critical and much discussed. Here are a few things to take into consideration about how to find the ideal location for a property that you can rent out and make money from:
Large Suburban Homes
Large suburban homes can sometimes be cheaper to purchase as a rental property than smaller properties in the city, due to land values. And for tenants, sometimes larger homes can fetch larger rental prices and be ideal for living and renting, making it a good decision to purchase there. However, suburban homes also typically come with some sorts of HOA regulations, meaning you may be more locked in to what you are allowed to do with the home itself in time. Because of that, you may be limited in your fixer-upper abilities, and it may actually be a worse investment to rent out here.
City Dweller Properties
In the inner city, properties can sometimes come expensively to purchase as a rental. And, unfortunately, depending on the city you are in, they may also be older and need quite a bit of upkeep, which requires you to sink more money in as an initial investment. That being said, there is incredibly high demand right now across the country for affordable rental property in the city, and you may be able to easily rent out your city dwelling at a higher rate, and very quickly. Additionally, with HOA requirements few and far between on inner city properties, you can fix up your property to your delight and make it rent-able to potential consumers.
All in all, there are certainly positives and negatives to both city and suburban homes as you look to rent out each to potential families or individuals. And those positives and negatives must be carefully weighed as you make the decision about where and how you will rent your property in time. Evaluate all of your options carefully in this case, as you may be surprised just how much of your investment you can make back based on the city you are in, and the area in which you choose to rent property.