Rental property can be a great investment, but it can be a challenge to figure out which property is the right investment for a client’s portfolio. There are a few things your client should consider right out of the gate: how much capital are they willing to put into this project, how much time are they looking to spend, and what kinds of returns are they looking for?
After that, it’s all about assessing the real estate and digging in to figure out if the property really is a sound investment. At the outset, a good property should seem (and be) relatively low-risk. Anything that would indicate an increased risk is a red flag, but there are six areas in particular where you can look to uncover potential risks:
Laurence Jankelow is the cofounder and chief operating officer at Avail, an online platform for independent landlords and their tenants.