Have you always wanted to invest in rental properties but are unsure if it's worth it?
The simple answer is that it is. Real estate investments in the U.S. have had returns of 215% since 2000.
But what if you specifically want to own rental units in Troy, Ohio? Is it still a good idea, and if so, how do you choose profitable ones?
We've shared the insights you've been looking for in this guide, so read on.
Safe Location
One thing that makes Troy, OH, an ideal place to invest in is its low crime rate. Compared to the national average, Troy's violent crime rate is 68% lower, and its property crime rate is 38% lower.
That doesn't mean all neighborhoods in Troy are safe, though. Some, like Troy West, Troy Southwest, and Staunton, are safer than others.
That said, do your due diligence and choose a safe property location, as crime rates influence vacancy and rental rates. For example, the safer a neighborhood is, the more people want to live there, driving higher rental rates. By contrast, a less secure location can scare away potential renters, resulting in higher vacancy rates.
Property Type
The type of property you choose (e.g., single-family, multi-family, condo, etc.) also influences its profitability. So do its size and features, such as whether it's a studio, one-bedroom, two-bedroom, or three-bedroom unit. The bigger the property and the more rooms it has, the higher the rent you can charge.
A single-family home is usually best for novice investors since you'll only deal with one tenant household at a time. However, that also means you'll only have one source of rental income unless you own multiple properties.
A multi-family property can provide more income, as you can rent out multiple units. However, it can be more complex and time-consuming since you'll have several tenants to manage. You'll also need more capital or a larger loan to purchase the residential building.
Positive Rental Valuation
Another rental strategy you can use to locate profitable units is a property valuation. It can help you determine the income potential of a property based on:
- The rental performance of comparable nearby properties
- The rental demand for the type of property you wish to invest in
- The average rent of comparable properties
You can perform a rough valuation of properties by searching for similar properties near the one you want to buy. Look at their rates and if they're getting much attention (e.g., comments from prospective renters). That should give you an idea of how much rent you can charge and if there's a strong demand for such property types.
Alternatively, you can work with a property manager like PMI Oakridge Management, which offers a free rental analysis.
Start Earning With Profitable Rental Properties
Remember: Profitable rental properties are in safe neighborhoods, have high demand, and yield favorable valuations. So, consider these factors when investing in real estate in Troy, OH.
Better yet, partner with PMI Oakridge Management from the very beginning! This way, you can start right with our free comprehensive rental analysis. From there, we can further help with our marketing, tenant screening, rent collection, lease enforcement, property maintenance, and eviction protection services.
So, contact us today! We look forward to helping you start and grow your rental business.
