One thought when buying an investment property

[ 0 ] September 16, 2016 |

To the extent possible, buy based on the worst of times, not the best.

A photo by Todd Diemer. unsplash.com/photos/67t2GJcD5PI

Rental properties are a hot topic right now in Fort Collins.  Rents are up, vacancies are down, and interest rates are very, very low.  At this point in time, there would appear to be very little risk; it’s difficult for investors not to find renters, and current rental rates are at a premium.  I contend, however, that this is a potentially dangerous and shortsighted view to take.  When I work with investors, my goal is to help them buy a property that is not only easy to rent now, but will be easy to rent when vacancy rates are higher (and they will, eventually, be higher).  Before writing an offer, I would urge you to consider this: Is this the type of property that is going to be appealing to a quality renter when vacancy rates are up?  That is, there will come a time when renters have multiple options, and aren’t desperate to find just anything; when this day comes, will they pick your rental, or the one down the street?  To the extent possible, buy based on the worst of times, not the best.

 

Category: Real Estate

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