By using a non-recourse loan from your IRA, you can quickly and easily invest in real estate. Of course, the properties that you own will not garner you any passive income if you don’t have renters occupying the property. While this might sound difficult to do, you can be clever about which pieces of real estate you invest in.
When it comes to investing in a property, be it residential or multifamily, there are some features that will draw new tenants faster than others. The fact is, the real estate market is changing and the features that were desirable even 10 years ago are no longer held in the same regard. If you’re looking to fill a space fast, invest in properties that have features like these.
What’s the Location Like?
We’ve discussed this previously in a blog post, but the location is a huge factor in your investing strategies. Up until recently, many homeowners would make a commute out of the suburbs into the city for work. Today, largely due to rising gas prices and other cost-of-living increases, renters are looking for homes that are close to their schooling, work, and other activities. Homes with nearby access to public transportation or central business districts are now some of the most valuable in any city. Similarly, if the home is near necessities like grocery stores, parks, and schools, renters will be more inclined to pay a higher price for these properties. Essentially, a location that allows the renter to feel connected to their community is generally going to be more valuable than those that are removed.
Landscaping Is Key
Landscaping is one of those things that really matters to some people and really doesn’t to others. No matter if the landscaping is a simple lawn with a few shade trees or an elaborate backyard oasis, renters of all varieties are spending more time outside. From hosting events to eating their meals, or just finding a way to relax, homes with at least well-maintained yards will be far more appealing to renters.
That said, nearly every renter will take into consideration the state of your landscaping before they sign a lease agreement. Some renters are looking for properties where they can add their own personal touch to the landscaping through gardening. Others, however, may lack any sense of gardening skills and will appreciate having a property with a landscape that is finished for them.
What’s the Storage Situation?
The fact is, Americans are consumers and that means they have lots of stuff they need to store. While self-storage units have sprung up all over the country, some people do not have nearly enough to justify the cost of renting a storage unit every month. This makes storage space at home a more valuable feature than ever. In particular, homes that feature expanded garages, unfinished basements or storage rooms, or even backyard sheds are often rented faster than properties without these features.
At Home Offices or Studies
In response to larger economic factors, many people now operate businesses out of their own home, or have a side hustle that helps them cover their bills. Indeed, it’s not uncommon for some people to do all of their work from home. For students and workers alike, having an office in their home is an appealing feature. In fact, the property doesn’t need to have a designated office space, and you can simply note in your advertisements or during your showing that the spare bedroom could be easily used as an office. If you’re looking to rent to students or young professionals, having an area that could clearly be used as an office space will help you rent your property faster.
Energy Efficient Appliances and Fixtures
No one likes high utility bills and with more renters are looking for ways to cut their monthly expenses while also reducing the carbon footprint, having energy efficient fixtures and appliances in your rental property is always appealing. Advertising the Energy Star rating appliances in your rental property is an immediate way to drum up attention for your property. Fitting your rental property with low flow toilets, efficient washers, dryers, and refrigerators as well as replacing the windows with ones that seal better are always your renters can save money. To take it one step further, you might consider investing in a property that has a solar panel attached. Real estate experts agree that energy efficient features can dramatically increase the amount you ask for in rent every month.
Does the Home Have Ceiling Fans?
In addition to energy efficient features, many renters are now looking for homes and properties that have ceiling fans in the major living spaces. This is because ceiling fans are far cheaper to run than the air conditioner and, in many cases, are more efficient in cooling a room. If you have to install ceiling fans in your rental property, make sure to put them in the bedrooms and gathering spaces, like the kitchen and living room, first. These are the spaces that renters will spend the most time in and want to be the most comfortable in.
Use a Loan from Your IRA to Invest in Real Estate
Interested in investing in real estate? First Western Federal Savings Bank is here to help. We have a wide variety of resources you can peruse in order to learn more about this process and our IRA lending practices. Connect with our non-recourse lending specialists today and start your application now.