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Buying an income property requires a specific rental property search. It is not necessary to consider only those buildings currently being used as rental properties, but you should have a list of needs that will make the property profitable for you. For example, consider these items.
#1 Legal Rental Requirements
You should look into the legal requirements to rent in the area you are researching. Some rental laws have very high safety standards. If the property you are considering is not up to these standards, it can cost a lot of money to make the adjustments.
#2 Rental Market
You should consider the average rent you can gain in the market you are researching. Factors that may change this include the number of renters, proximity to public transit, proximity to universities and seasonal rental changes in your area.
#3 Live/Rent Options
If you are looking to live in the property while you rent out a portion of it, you need to consider how livable the residence will actually be. For example, you should aim to have a separate entrance, kitchen and bathroom instead of simply a separate living space. This will allow you to enjoy the residence while you still earn an income on a portion you are not using.
