Factors to Consider When Buying Rental Homes in Louisiana As a Retirement Option. Housing is the one thing that will never cease to be a central player in many people’s lives. In fact, everyone needs a home. Getting a home is one of the basic human rights that every other person wants to be assured of. When considering of the many retirement options that are out there, you might be tempted to take rental homes as just too bland for your liking. But let’s face it, much as you buy sleek cars, posh electronics and other stuff, they all depreciate and in more cases than a few, they won’t be around at your time of retiring. When investing in the rental homes, all you need to consider is the following;
Location:
The location that your property is plays a very important role in determining the value you get out of the property. In fact, it is the location of the property that wholly determines how much your property will fetch in terms of rental income or even the price. Much as you can renovate and remodel a house, you cannot move its location. While buying a residential rental property, you will need to take into account the amenities that a tenant might need. Nearness to the public transport system, the shopping malls, the security of the neighborhood, and the cleanliness of the neighborhood and the availability of other services like water, power and so on. These are the factors that you will need to consider first when buying a residential rental property.
Cash flow consideration:
The cash flow factor is the other thing that every rental property owner must consider. You will need to pay of the insurance, the mortgage if bought using the same and the taxes. You will need to balance these expenses off against the rental income on the same property. If you have a whole two or three decades to retire then you will not really need a high positive net income but if you are to leave active employment in the next five years, then you will have to consider having higher net income left after deducting all of the statutory and mandatory expenses from the gross rent. All in all, you will need to be targeting receiving the gross rent as your net income by the time you are retiring. The consideration of all these factors is what is called cash flow factor.
Have a solid backup plan:
Just like any other business, investing in rental property come with unique risks that you must always be prepared for. As a wise business person you will need to know that bad times are not an ‘if’ but a ‘when’. There will be times that your tenant will not have a job or you might even find a bad tenant who does not pay. You might also find that your house system or the power circuit is malfunctioning thus rendering your unit uninhabitable. It is for this reason that you will need to have a backup plan that will sustain you when things are tough. Factors to Consider When Buying Rental Homes in Louisiana As a Retirement Option.
Jamie Mixon
Top Louisiana Real Estate Agent
Keller Williams
The Mixon Team
1522 W. Causeway Approach
Mandeville, LA
Phone: 985-277-1063
Fax: 985-727-7001
