Here's Alaska real estate market update for July 11th-17th, 2020.On the top of our list is the Anchorage market. During this week, 435 are currently active listings where 81 of which are new.
3 Ways to Value A Rental Property
Are you planning to invest in a rental property? Whether it is a condo, multi or single family home, how would you know if it's going to be a good investment?
Here are a few ways to determine if the property will be a good investment or not.
Is the selling price competitive in the market?
How's the comparative market analysis of the rental property?
It is important to compare the property to other properties with similar characteristics that were sold recently. This can help you determine if the property is over-priced or relatively cheap. If it’s cheap, you have to research more because it may be priced low for a reason.
Your local realtor can greatly help you with this.
How much will be the potential rent price?
Do an analysis for its potential performance. Determine the average market rate rent by checking comparables from different rental websites online. Be sure to compare it to similar homes within the same neighborhood.
Take note not just the bed/bath count and size but most especially the property condition and age because this can determine the maintenance costs you will need for the property. It is also vital to consider the location of the property. Is it a place where many would like to look for a rental or a relatively remote area? This will have a big impact
Get all the notable things you can find to have a good reliable and realistic data.
How much will be the ROI?
Be sure to calculate the real ROI not just what you want it to be. You can estimate the potential rent for the year less the estimated annual expenses and mortgage if it’s not cash. Will there be any income? Also, consider the property value’s appreciation or depreciation potential.
How much and when will you possibly get your earnings from this investment?
Will you be satisfied with the potential ROI you calculated?
If you really are interested in investing in real estate, it is important to look at all these components before making your decision. It is vital to find a property that can yield you a favorable amount of income so you can enjoy your investment.
If you would like to learn more on investing in real estate and would like to look for a property to buy especially around Alaska, call us 907 570-6757 or 907-720-4663. We can help you find your dream rental home investment.
Vanna has called Alaska home for the past 15 years. As a mother, real estate investor and previous business owner, Vanna brings many different perspectives when working for her clients. She has been a....
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