El Paso Rental Property Investment
If you want to invest in rental property in El Paso, TX, contact Acala Investments. We offer various services, including commercial real estate and residential transactions, and we have been in the real estate industry for over 25 years. What makes us even better is that our properties are sold at a fixed rate.
Here are some of the most frequently asked questions we hear about investing in El Paso real estate:
When Should You Consider Investing in a Rental Property?
If you want to make extra income and not touch your savings or retirement plan, rental properties can be a great option for you. Investing in one may not be as easy as you think, however. This is the driving factor why you should consider getting assistance from professionals before purchasing real estate properties.
Things to consider when purchasing a rental property include:
You must choose a location that will attract renters and is accessible to transportation, schools, shopping centers, and other conveniences. While investing in a property in an ideal location may cost more than one located in the city's outskirts, it will be worth your investment because you can charge higher rents. If the neighborhood has a low crime rate and good schools, these factors can increase your chances of attracting high-quality tenants.
2. Type of Property
Another factor you should consider is the type of property to invest in. If you want to rely on a stable income and don't want much hassle, apartment complexes can be a good option. Single-family homes can also be good options, but they are more prone to eviction proceedings.
3. Condition of the Property
To get the best return on investment, consider how much you're willing to invest to improve the property's condition before it's ready for rental. Look for a property that needs minimal work, because that means you can rent it out sooner without incurring a lot of repair expenses that chip away at your bottom line. You should also choose a property that requires few renovations if you don't have the money to hire a contractor.
What Kind of Rental Property Is Best to Invest In?
There are a lot of factors to consider when choosing a type of property in El Paso, TX. Typical options include single-family homes, condominiums, townhouses, and apartments.
Investing in rental condos is one of the most profitable as they have low maintenance costs compared to other properties. In addition, condo complexes may allow you to benefit from economies of scale since amenities can be shared among several tenants.
While investing in single-family homes may seem like a good idea, they tend to attract high-risk tenants, and renovations can significantly increase your expenses. To minimize these risks, some investors choose to look for a property within a gated community. Townhouse complexes are also good choices, but the maintenance cost may be high.
Investing in an apartment complex is one of the best options as you will have access to a wider range of tenants. The only downside with investing in this type of property is the many associated expenses that come with it, including utilities, janitorial service, and property management fees.
How Do You Determine How Much Rent to Charge?
One of the most important factors you should consider when looking for a rental property in El Paso, TX, is how much rent to charge. Consider how much rent you need to receive in order to stay profitable, as well as what other properties in El Paso are charging. Although it's possible that you may not get top dollar for your property, you should ensure that your monthly rent amount is not substantially lower than the other available properties.
Most property owners charge their tenants according to the property's size and location. For instance, if you want to rent a 2-bedroom apartment in an upscale neighborhood, you may want to set the monthly rent at $2,000 or higher.
How Do You Protect Your Rental Property?
Security is one of the most important factors to consider when investing in a rental property. You may wish to seek the help of security professionals to determine how you can protect your properties before tenants move in. This includes installing security cameras, motion detectors, alarm systems, and deadbolts on all entry points of your property. It’s also a good idea to establish guidelines for your tenants, making them less likely to attract criminals.
Liquidating Rental Properties
If you want to sell a multi-unit home, such as a condominium, it’s usually best to avoid selling the property as a whole. Instead, try selling the units individually so you can get more value for each unit. Consider looking for real estate brokers in El Paso, TX that specialize in selling rented properties.
If you’re ready to enter the world of investment properties in El Paso, or if you want to add another property to your portfolio, contact Acala Investments today!