When you’re looking for a Boise investment property, you have to think about how that purchase will fit into your own investment goals and whether it’s going to make you money. These are important considerations. There are other specific questions you need to ask yourself. For example, if the property needs a lot of work before it’s ready for the rental market - will you be willing to do that work?
Whether you’re buying your first rental property or adding to a growing portfolio, your investment decisions have to be strategic.
At Wave Property Management, we enjoy helping investors succeed. These are some of the things to think about when you’re evaluating whether a potential Boise rental property is a good investment.
Understand Your Own Investment Goals
Evaluating a potential rental property should always start with your investment goals. You can’t know if a particular home is a good rental investment unless you know what you’re hoping to accomplish with your real estate portfolio. Do you want cash flow or is long-term appreciation more important? Are you going to rent the property out to long-term tenants or short-term guests?
Once you’ve established your own investment goals, there are a few things you need to check off your list before you acquire a new piece of rental real estate. These factors will be important for almost all investors - regardless of your unique investment goals.
Look for the Right Location
You already know that when it comes to real estate, location matters. It matters to the tenants who will rent your property, and that means it must matter to you before you move forward with an acquisition. Most of the renters we work with in Boise and the surrounding areas are looking for a home that’s close to their daily needs, including grocery stores, retailers, hospitals, schools, and highways. They want options for dining and entertainment.
Walkable neighborhoods are also popular with tenants who prefer not to drive, park, and fight traffic. A property in a more remote location will attract a smaller pool of tenants. This isn’t necessarily a bad thing, just something to remember when you’re deciding what to buy and evaluating what you might be able to earn in rent.
Schedule a Professional Inspection Before You Buy
There’s nothing wrong with getting a great deal on a fixer-upper. The price is usually attractive, and you can get excited about putting your own touches on the home. However, you have to be prepared for the additional investment this will require. You’ll have to spend some money to get it into an acceptable condition for tenants. That’s going to cost money and it’s also going to delay your rental income. It may be months before you can get a tenant in place and start collecting rent.
You may prefer to look for a well-maintained property that is ready to rent right now. Have the home inspected thoroughly by a professional inspector and a local property manager. That will tell you if any repairs or updates will be needed before you list it on the Boise rental market.
Calculate Earnings and Expenses
Location and condition are critical when you’re choosing an investment property. You also have to make sure the potential investment property earns you some money.
Take a look at what you’ll spend on it and what you can expect for rental income. Your property manager should be able to conduct a comparable market analysis that tells you what kind of rents you can expect. Compare this to the expenses you’ll face, including vacancy time, repairs, insurance, taxes, and management fees. Make sure you’re comfortable with the cash flow that you’ll earn.
There’s a lot more to consider before you buy an investment property in Boise, and the right rental investment will look different to each investor. If you’d like to talk more about your own specific investment goals and how to find the right property, please contact us at Wave Property Management.
Wave Property Management is a full-service leasing and management company serving Boise as well as nearby communities such as Meridian, Garden City, Nampa, Mountain Home, and Caldwell. We work with new rental property owners as well as established investors with growing real estate portfolios.
