Long-term Rental Property Investments

Key Summary Takeaways for Buy and Hold Property Examinations

• Things to check for your investment.

• Look into current and future plumbing issues.

• Be sure there is parking adequate for use.

• Examine that there is enough land for your intended use now and in the future.

• A lot that is leveled can make a difference on use.

• Check the basement and attic crawlways for ease of access.

  
  

Overview

Sounds a little too much to expect? Well, you can't always have everything when buying an investment property. In a decade's time (which is a normal time frame for long-term properties), you tend to think about certain important considerations compared to the house flipping investments. Here's how to narrow down on properties with a long-term perspective.

5 Qualities to Check in Long-Term Rental Investments

1. Expandable Plumbing

When you are inspecting the home, look for signs of unfinished plumbing or expandable plumbing and electrical fixtures. For example, the attic may have unused electrical fittings or plumbings. Such a space can be expanded into a spare room. The same goes for unfinished basements. These are signs that the property has the potential to expand and can deliver much higher returns in the future.

2. Adequate Parking

Most suburban neighborhoods have parking lots. This means the potential tenants are going to ask for one the moment they inspect the property. Do observe if the property has the potential to create a parking lot. If you are buying an investment property, the more parking the better. However, prefer properties where the parking lot can be expanded and is not currently there. This is because the business loans for rental property can increase considering more features offered by the property.

3. Ample Vacant Land

If a home has vacant land, this promises expansion plans. Even though you may not choose to expand, it still serves as an open space. This means that large families are more likely to rent such a home. Make sure such space must be within the zoning requirements as mandated by the town/county. An exception to this rule can be urban areas or city centers. In this case, not only will you incur higher business loans for rental property but also face severe rules for expansion. Don't let vacant land be a non-performing asset.

4. Perfectly Leveled Lot

This is not applicable to suburbs where large communities are carved on leveled lots. But in cities, it is often noticed that old lots do not adhere to these criteria. Pay particular attention to the level of the ground and if it poses any issues. This can be unfavorable to the tenants in the long run. Also, it can cause flooding during heavy rains and damage basements. Even if not, it can certainly cause water and mold problems.

5. Easily Accessible Crawlspace or Basement

If the owning period of the home is in decades, it is advisable to look for basement or crawlspace access. You may have to reinforce the foundation or shift the spaces, but it will be worth the price. A crawlspace that is very hard to crawl isn't to any owner's taste. Easy access to the home's various spaces reflects transparency in construction as well as a good quality build.

 

A good opportunity may come in disguise. You have to identify the potential of a house in the coming decades well in advance. This means that you will have to consider the above-mentioned as well as many other factors to finally make a decision. And if you are taking substantial business loans for rental property, holding property for the long-term can deliver huge returns.