Older Rental vs. Newer Rental – Which One Is Better?
Are you planning on buying a rental property to add to your portfolio of investment properties? If so, you may be debating if you should purchase a new rental property or an older rental. As a top beach management company, we know how difficult it can be to choose the right rental property, that’s why in this article we will break down the pros and cons of buying a new vs. older rental.
What to Expect When Buying an Older Rental Property
Pros – One of the benefits that comes from buying an older rental property is that it may need renovation work and you could submit an offer which is lower than the owners asking price, then buy the property for below market value.
Cons – Since the property is older, it’s entirely possible that the home is going to need extensive work done especially electrical, mechanical, or foundation work. These repairs can add up so it’s best to weigh the costs before buying an older property.
What to Expect When Purchasing A New Rental Property
Pros – The obvious benefit of purchasing a new rental property is that since everything is new, the construction may still be under warranty. These warranties can save you big money especially if something goes wrong during the first few years that you own the property so it’s best to keep this in mind before making your purchase.
Cons – If the property is in a new subdivision, it’s possible that there isn’t comparable market data for you to see how much your property should appreciate over the next 5 years. An area that’s not as established as others might not have the best restaurants or amenities either so these are things to keep in mind before purchasing a real estate property.
Get San Francisco Property Management Here
For professional San Francisco Property Management, contact Utopia Property Management today by calling us at (800) 294-4656 or contact us through our website.