Tips for Supplementing Your Income by Investing in Rental Properties in Dallas

When it comes to investment properties, you need to look at both long-term and the short-term returns. Eventually, you would like to be able to sell the property at a profit. However, you don’t want all of the money you’re investing now to be tied up in the property for the foreseeable future. Furthermore, you don’t want to lose money to interest rates, either. That’s why investing in rental properties in Dallas is a great idea.

However, there’s a little bit more to income property in Dallas (or anywhere else in Texas or the rest of the United States) than just making a purchase, getting some tenants, and collecting rent. If you’re investing in rental properties in Dallas, look for these three factors. They’ll help point you to the right investment for your budget, your time, and your goals.

It’s Not a Risky Investment

We’ve all heard of high-risk, high-reward investments. They may have their place, but it’s not in real estate. Real estate investments should be chosen for their stability and long-term ROIs. Purchasing property in a transitional area, for example, can be a great move, but only if you’ve seen enough evidence that the transition is occurring and that the building in question is going to flourish in the coming years. When it comes to real estate, choose the safer bet almost every time.

It Has Long-Term Tenants

When looking for income property in Dallas, you may want to consider commercial properties or purchasing through an investment group. Why? Because the leases on commercial properties tend to be longer than those on rental properties. Whereas the leases for an apartment building are usually renewed annually, the leases on a retail building will last, on average three to five years. That’s a lot more stable income for your investment.

It’s Not a Huge Time Investment

Finally – another reason to consider an investment group or other turnkey property – don’t choose a property that will take up a lot of your time and energy. This is a guaranteed loss for your investment. Imagine all of the other profitable investments and ventures you could be making while you waste time handling property management issues.

If a property meets all of these requirements, it may still not be the right property for your investment, but it definitely deserves further consideration. If it fails to meet any of them, though, move on to the next and continue your search for the best return on your investment.