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WARNING SIGNS TO LOOK FOR IN AN EDMONTON RENTAL PROPERTY

 Edmonton Homes For Sale

Investing in Edmonton rental properties is one of the best alternatives to earn passive income in these tough economic times.

Like any other investment vehicles, due diligence is must before committing yourself to this venture. Today, Team Leading Edge will discuss the warning signs you should look for when investing in an Edmonton rental property.

Homes For Sale EdmontonTo give you a fair warning, before purchasing a rental property you must double or even triple check the homeowners associations rules and restrictions, there are times where renting out the property is explicit prohibited by the association-yes! That’s crazy but some gullible people are still easily deceived into buying such a property.

There are also crazier times where Edmontonians are tricked into buying a second-mortgaged house on a foreclosure auction and will find out in the end that the banking institution that issued the first mortgage is foreclosing on it.

It’s really quite scary if potential investors would just jump in without doing any research.

Now, let’s dig in a little deeper. Here are specific details you should watch out for.

DURATION: The amount of time that a property is on the market should be the first warning sign. If it’s been sitting for more than a month, it’s begging the question, WHY????
What are the problems of the property? Is it structural or is it because of the owners? Should the real estate agent be at fault for incompetence? Ouch!
For the team, the most important question here is the price. Is the selling price above market? As a buy-to-hold investor, you should buy at the low-end.

Also, put in mind that as a rental investor, your main pursuit is return on cash rather than market-value-appreciation.

INFORMATION: Rental properties for sale should have readily available information such as maintenance cost, taxes and lessee or tenant quality (if there are any). This information will provide you with enough data points to analyze the asset and classify if this is a good or bad investment.

If and when those information mentioned above are not available, it is to your best interest to simply walk away and never look back.

VACANCY STATUS: This would complement the “lessee or tenant quality” information. If the seller cannot provide that information, then it would be mean that the property have been vacant for quite a while.

Properties that have been vacant for long periods of time deteriorate. The repair and maintenance cost might outweigh your return on cash. These warning signs should help steer you away from those terrible investments.

Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.

For more from Team Leading Edge, follow the team on Twitter at @teamleadingedge, subscribe via this RSS feed. Make sure to subscribe to Team Leading Edge daily newsletter on the Edmonton Real Estate market.

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