7 Tips To Find A Profitable Income Property

We’ve helped countless Calgarians find their income properties. When it comes to purchasing an income property, it’s all about thoroughly researching the neighbourhoods. Here are our key tips to finding the perfect income property in Calgary:

1. Your Financials

Before stepping into the landlord world make sure that your own finances are in order. Many banks have different requirements for income properties when it comes to down payments, closing costs, and taxes. Talk to your current mortgage broker or touch base with your realtor so they can connect you with one that they trust.

2. Choose the neighbourhood wisely

An ideal neighbourhood for an income property will have plenty of amenities, desirable livability scores, and a great neighbourhood reputation. This is an important factor in attracting renters and more specifically ideal renters.

3. Know the property taxes / condo fees

Property taxes can vary from neighbourhood to neighbourhood, and condo fees can jump significantly from building to building. These fees will contribute to the rental price you’re asking for which will have a direct effect on how desirable your rental property is to renters.

4. Know the vacancy rates

If you find a great home in an area with a very high vacancy rate your chances of finding a renter plummet and your chances of making a good monthly income off the property go down with it. Find out what the vacancy rates are in the areas of the homes that you like. If you’re not sure how ask your Realtor.

5. Find out the average rent value in the neighbourhood

The goal with an income property is, just that –  to make income! Before you put an offer on a home it’s important to look at what the homes in the area are renting for to ensure you’re making the profit you desire.

6. Pay attention to the condition of the home

Even though you won’t be living in the home you will be maintaining it. It can be tempting to buy the cheapest home you find but if it’s going to cost you an arm and leg just to maintain it may not be worth it. When you place an offer on a home consider hiring a professional home inspector to take a look at the home and let them know that it will be an income property.

7. Work with a realtor

We know this sounds biased since we are Realtors but a good Realtor will snag you the best deal on the home you want. The goal of this property is to make you money and the initial investment shouldn’t set you so far back that you feel rushed to find renters.

Get in touch with us if you’ve been thinking about purchasing an income property. We’ll set you up to get MLS updates when new listings that meet your criteria hit the Calgary real estate market. In the current market situation (at the time of publishing this blog) homes are moving very quickly so staying on top of the new listings is even more crucial. If you do you see one hop online that interests you give us a call so we can arrange a showing for you.

Congrats on taking the first steps of your research. Your next step is to start looking into the options on the market. Contact us to get set up on the MLS updates. We can’t wait to cheer you on in the journey.