Keys to Investing in Rental Properties in Philadelphia
With its towering buildings and historic streets, Philadelphia is a melting pot of people of many different backgrounds. With all of these people there's a need for affordable housing. As a result, there is an incredible demand for rental properties. Becoming a landlord is an incredible opportunity for the clever real estate investor to profit from this demand.
Quality, affordable rental properties in Philadelphia are few and far between, and it is here that a real estate investor looking to make long term cash flow can find their niche. The key to making a profit from a rental property is to find a desirable area and then purchase a property in this area for the lowest price available. This can be achieved by first doing a bit of research.
Prior to deciding which property they wish to buy, an investor should investigate the neighborhoods where real estate is available. They should look for appealing neighborhoods with good places to live. They should find out if there are other equivalent rentals in the area and what their prices are. It is also important to determine the condition in which you are willing to buy properties. While purchasing a "fixer upper" can be a great option for long term gain, it is not as desirable an option for those who only intend to maintain control of the property for five or six years if you do not plan to rehab it yourself.
After locating the area in which they wish to establish their rental property and getting a general idea of the rent in the area, it is time for the investor to purchase the house. The motto of any real estate investor is to buy low and sell high, or in this case, buy low and rent high. There are several easy methods to obtain a property at a rock bottom price. One option is through a wholesale deal. Wholesalers are real estate professionals whose job is to find properties, get them under contract for sale and then resell them to investors. These properties are sold "as is", and usually require some repairs prior to being able to rent out at a reasonable rate.
Another excellent option is to purchase from a motivated seller. These are properties that are on their way to the foreclosure auction if their owners cannot sell them first, and as a result can often be obtained for a purchase price well below market value. These are many times the best option because the investor is dealing directly with the owner rather than a third party, and can work more closely with the situation to create the best deal possible for the property.
Once the property is purchased, it is time to hire a good contractor to make any repairs or renovations necessary. It is very important to remember that the rental market in Philadelphia is an extremely competitive one. The success of any investor is going to depend entirely on the reputation they build for themselves, especially while maintaining rental properties. A good landlord can get free advertising by word of mouth through taking care of the tenants and the house.
The trick for many people is in finding the property to begin with. Listings to the general public are usually over shopped and difficult to separate between the real finds and the homes with inflated values. The typical investor can get frustrated and overwhelmed by the lack of accurate, reliable information for homes and properties for sale in Philadelphia. Luckily for you, that is where MyHouseDeals.com comes in.
As a member of MyHouseDeals.com, we'll keep you updated about new properties in your area daily, and each new house added to the list comes with full descriptions, value and repair estimates, and full contact information for the seller. That's right. We do all of the leg work for you, so all you have to do is focus on establishing and expanding your business. Become a member for free today by clicking the button below!