If you're looking to buy your first piece of rental property, you're making a great choice. Taking on a residential tenant is an excellent way for you to enter the world of real estate because it could give you the experience and courage to eventually move on and buy commercial property at some point in the future. Before you can get your feet wet, you need to determine which kind of property you want to invest in. There are townhomes, duplexes, condominiums, and even apartment buildings. However, buying a single-family home could be the ideal way for you to get just what you want out of property ownership.
Good Features Get Noticed
Attached living is not for everyone. Some people absolutely hate the idea of residing in a place where they share a wall with a stranger. The unwanted noises that come through when trying to study along with the possibility of moving next to someone who has no regard for their neighbors can be enough to make anyone decide to look elsewhere.
When you're renting out a single-family home, you're able to really highlight some desirable features that are sure to be noticed. A private yard is very attractive because it allows the tenant to sunbathe or plant a garden, or it simply gives them room to let their furry friend out to play or use the bathroom without even having to leave the property. These are the kinds of things you must think about before buying because once your name is signed and the down payment has been made, there is usually no turning back.
Quality For Better Insurance Rates
It is very important for you to think about your purchase from many different angles. You might get a great deal on the property but then you have to consider insurance. Trying to insure an attached dwelling can sometimes be extremely expensive simply because of the risk that is involved. What if a neighbor smokes and their house burns down? Insurance companies carefully calculate the risks involved with covering a multi-tenant dwelling, and if you look up the quotes, you'll probably find that your rate will go down considerably if you go for the single-family home.
Purchasing a single-family home in a great neighborhood should have the potential tenants knocking at your door in no time. Ask your realtor to pull up a few listings and schedule some tours to see which house you want to buy.
For more information on single-family homes, contact a real estate agent.