I’ve recently inherited some money and am considering investing in real estate to diversify my portfolio. I’ve spotted a few rental properties in my area that look promising, but I’m unsure how to assess their potential value and return on investment. What key factors should I evaluate to ensure I’m making a sound investment? Any tips or tools for analyzing rental properties would be greatly appreciated!
Evaluate location, market demand, property condition, and cash flow potential. Calculate ROI by comparing rental income with expenses (mortgage, taxes, maintenance). Consider cap rate, occupancy rates, and long-term appreciation. Tools like Zillow, Redfin, and rental calculators can assist in analysis.