I would look at:
- the town - how many beaches, things to do, taxes, rules that the town has for rentals
- property with a rental history already - try to buy the existing client list so your empty weeks are fewer
- property with a history of the same landscaper, plumber, electrician, etc. and ask them if the owner was cheap or not.
- interview management companies - ask for references, look at the properties they already manage (on their web page because they'll give you the nice ones if they aren't all nice.)
- learn the rental laws, forms, procedures, etc.
- If you plan to rent off season, the town is more important because some towns don't have the same need for off season rentals.
- rental demand for the area you like. You may like an area that is not necessarily a good rental area.
- ask a lender what requirements for down payment, insurance, etc.
- ask an insurance company about insurance, dogs, pools, flood, etc.
I know this guy can be a helpful mortgage person: firstname.lastname@example.org
Bob Tranchell Total Mortgage Services LLC (508) 367-5731 cell
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If you are talking about a rental unit, what are the yearly expenses what is the yearly income, what is the yearly NET INCOME.
If the property was previously used as an investment property that data should be available to you. If not you are going to have to make an educated guess.
For many savvy investors they use a formula to determine the Capitilization Rate of a property which gives you an idea of the financial return on your investment after net income and expenses. There are many articles online about Cap Rate and it may behoove you to do some reading.
Personally, if it has previously been used as a rental property and there is several years of history of a solid return not much else matters. My family owns some seasonal rentals and as Heath pointed out try to obtain the existing client list. We have no problem booking the entire season by December it it is primarily the same people renting year after year.
I tend to agree with Louis. Rental property, especially vacation on the Cape, can be more trouble than itis worth. I have had headaches myself. Louis mentioned many interesting areas, but why would you want to face the traffic of going to the Cape to maintain your property- You should also look at the wonderful small towns along the South Shore like Cohasset, Scituate, Marshfield, and the beach communities that surround them.
I would be happy to discuss this thought with you in more detail if you are interested.
Good luck with your hunting.
The Trapp Team
Keller Williams Showcase Properties
That being said, investment property can mean other things, and our year round rental market down here is also very hot and may be a way to pick up a home in a nice area and collect rent.
Finally, given the types of buyers we see a lot of, one floor living is a hugy desired property and will help you in resale if you are looking to sell in the short term.
Why go to the Cape to find a home to rent out????
If you are looking at it as a place you want to end up that is one thing.
The Cape has always been a volatile market in that when the economy is bad the first thing they try to sell is their second homes.
I own down there with the idea of renting it out initially, found it was not worth it. When I wanted to be there is when everyone wanted to rent it. Also emptying out personal belongings, worrying about upkeep and damage etc. And I'm use to it as I own rental properties.
I'd rather have my investments elsewhere and go to the Cape to get away from all the headaches and enjoy life.
As to rents, the higher the rent the closer to the water. There are many options if you do decide to buy in the Cape, each has its own character and amenities, Falmouth, Hyannis, Yarmouth, Dennis, Harwich, Brewster, Orleans, Chatham, Wellfleet, Turo, Ptown all have rental and depending on which area you like, I'd find a local buyer agent.
There are a number of things you should be looking for. My first thought would be the location of the property. As I'm sure you are aware of, the closer you get to the water the more expensive that property will be. You might want to look at a town that has beaches on both sides. I guess the big thing is, Is the property in a FLOOD ZONE!!!
If you would like to discuss this further. Please feel free to contact me.
Authentic Home Finder