But one mistake that can be fatal to your real estate business is choosing the wrong property.
But how do you know what the right property is?
After all, there are a lot of properties out there.
Therefore, in my experience, 3- or 4-bedroom houses tend to make the best rentals because they attract long-term tenants, which cuts down your vacancy expenses.
Once you get into 5-bedroom homes or higher, you’ll find the only tenants willing to rent them are families with a lot of kids.
Keeping a house to 3 bedrooms (maybe 4) is the best way to keep the kid count down legally.
Garage When you are investing in single-family houses, you may have difficulty finding a stable, long-term tenant for a house without a garage.
When shopping for multifamily, at least look for ones where heat and electricity can be paid by the tenant, and if you can find properties that can be converted to a “master metered” system to allow tenants to pay for their own water, you’ve potentially struck gold!
Off-street parking (a driveway, carport, or garage) is something nearly all great tenants prefer, so look for properties with this feature.
Buy in locations where tenants want to live, and you’ll find a more stable rental.