Investing in a rental property can be a great way to build up some passive income out of Central Pennsylvania. You will have to deal with some caveats though, as you’re not simply going to be profitable by investing in any property you see. Be sure to take into account some of these considerations before you purchase your first rental property in Central PA.
Before purchasing a piece of property, you’re going to have to analyze all of the required costs. These include regular and non-regular costs that you’re going to have to take on as a property owner. For regular costs, you’re going to have to think about how much you’re going to have to pay in property taxes, insurance, utility payments, and more.
For non-regular costs, you’ll have to deal with any repairs your tenants might need, like having a water line break, roof collapse, window break, and many other scenarios that can happen on any kind of property. You’ll also have to think about how often you’ll want to renovate your property to make it appealing to those looking to rent it out. Make sure you analyze all of the costs it takes to own a rental property.
Commercial or Residential
Once you’ve understood the costs that go into a rental property, you’ll then have to choose between the two main types of rental properties to purchase from. Each type of property can come with its own set of challenges you could or couldn’t be ready for.
One of these types is commercial property. This type of property includes retail stores, office buildings, apartment complexes, and much more. Investors like to go towards these types of properties as they don’t have as much tenant turnover as other types of properties. The only concern some might have is the paperwork side of things can be much more difficult, especially if you are looking to purchase commercial property in the middle of a large city.
The other main type of property is residential. Residential property refers to houses, condos, townhouses, and undeveloped lots. With residential property, you typically don’t have to deal with all of the paperwork that you would if you were renting out commercial property. The downside to this is that you’re likely going to have to deal with much heavier turnover. Just make sure you strongly consider what type of rental property you want to purchase before you spend your money.