When it comes to buying real estate, there are numerous ways of searching for property listings. One might argue that hiring an agent to find listings is an unnecessary expense. On the contrary, the expert advice you will receive will come in handy in many situations. This shouldn’t necessarily stop you from doing your own research, provided you know the right questions to ask. Purchasing real estate is not some kind of impulsive buy one makes; it requires time, effort, and a sizeable investment.

Points to consider before buying property

• The physical condition of the property is the first and foremost factor to take into account before you consider a long-term rental property investment. A thorough inspection by a certified property valuer or a civil engineer is advisable to assess the physical condition.
• The inspection will help you ascertain the cost of repairs and renovations before the rental property investment is deemed prudent. When it comes to buying property, new or old for that matter, you must be ready to bear unexpected additional expenses post inspection.
• There is a simple rate of return expected based on the value of the property. Ideally, you must be able to recover at least 1% of the amount in case of a rental property investment. If the current market value of the property is $250,000, you must charge a minimum rent of $2,500 per month. The 1% rule will ensure a steady return on your rental property investment as real estate rates fluctuate in a progressive manner.
• Taxes can be a significant problem as the amount will directly cut into the returns you expect after putting up your property for rent. The rate of tax applicable will depend on the rural or urban setting. The rate applicable for a rental property investor will be higher than the rate chargeable for owners. Investors buy and sell properties for a decent margin while owners tend to let out the property for rent.
• Apart from taxes, the cost of property insurance is another significant yet necessary expenditure that will eat into your profits. The amount of coverage, premium, deductible for taxation purposes, and even coverage for the tenant will all form part of the total insurance cost. You must factor in the amount and estimate your annual insurance cost.
• The neighborhood must be tenant friendly if you plan on making a rental property investment. A rental property must be purchased keeping in mind all the factors that a potential tenant might consider before moving in.
• Consider the option of hiring professionals or property management experts to take care of the supervision and maintenance of the property from time to time. Property management firms are much more adept and equipped to deal with tenant grievances in case you are planning to buy and rent out high-end property or real estate.

Benefits of investing in a residential property

• One of the main benefits of owning residential property is a steady inflow of rental income that directly depends on the current market value. The higher the property value, the higher will be the return on investment.
• The availability of tax benefits that can be claimed for rental income is one of the major benefits of owning residential property.
• An investment in real estate for that matter is beneficial in the long run. The rent from a let out property is a steady source of income with many tax benefits. Moreover, the property can be passed down to your next generation for them to benefit from a steady and continuous source of income.

Best places to invest
Location is of the utmost importance when it comes to buying property. It is also important to compare the pros and cons of investing in a property in an urban setting as opposed to a rural one. The return on investment is the ultimate deciding factor and along with finding out what to invest, you must also consider where to invest. The following popular locations are the best choice to own residential property in.

Cities in Florida
Tampa, Orlando, and Cape Coral are among the best places to make a sizeable rental property investment. Florida is a culmination of beautiful all year warm weather, a ton of tourist attractions, and employment opportunities that attract more and more tenants every year.

Atlanta, Georgia
A high employment rate and a low median cost for property investment in Atlanta make the city one of the popular places to invest in rental property for investment.

Pittsburgh, Pennsylvania
Tech startups, film production opportunities second to Hollywood, and a favorable mean rate for rentals makes Pittsburgh the best place to invest in property on the east coast.

Michigan, Detroit
When it comes to fortune 500 companies, Detroit city is home to a fifth of the total number making it another preferable alternative when it comes to property investment. Average property investment in a good neighborhood starts at $60,000.

Other popular cities to make a significant rental property investment include St.Cloud, Houston, Ohio, Chicago, Indianapolis, and Missouri among many others.