Are You Up for Owning a Rental Property? | Red Rock Mortgage Knoxville

The team at Red Rock Mortgage Knoxville understands how glamorous owning a rental property can seem, especially with the various HGTV shows on television now-a-days. However, before you consider diving into investment in a rental property, you first want to make sure you know exactly what you are getting into before you buy.

Make Sure Your Property Is a Money Maker

Before jumping into rental property ownership, there are some things you want to consider.

First, who do you plan on renting to? Is your community within a college area? If so, then will college kids be your main focus? Or do you want to help newly married couples find a place to call home for the first time? You want to know who your main target will be when finding renters because it will also determine what type of rental property you need to look for when investing.

You also want to check out the neighborhood the rental property is located within. It doesn’t matter how nice you make the rental home. If the house is located in a rough area, the chances are not great of it renting out—especially if you are looking to get top dollar for the rental property each month. Therefore, it’s important that you do your research of not only the neighborhood, but surrounding areas, too! And be sure to consider the school zoning if you’re renting to families.

Price is another variable you need to consider when investing in a rental property. Of course the main reason for this choice is to make money for yourself. Therefore, you need to think about how much rental property you can afford, how much you need to charge for rent, and if the monthly rental payment will both cover the mortgage and help you create a nest egg. Remember, when you are a landlord, you are responsible for pipes bursting, toilets flooding, etc. Therefore, you want to make sure the money you make is enough to cover all costs. It may take awhile before you starting actually making money on the property. But, in the long run, it can be a good financial investment.

Are you ready to take the plunge into owning a rental property? Contact Red Rock Mortgage Knoxville to learn how we can help you invest in rental properties now and in the future.