The Albuquerque real estate market will be as competitive as ever in 2024, experts predict. With potentially lower interest rates, there will be fierce competition and higher home prices overall.
Now is a great time to consider real estate investing in the Albuquerque area. Once you buy your first property, you can start bringing in extra income every month from your rental income.
Have you ever wondered how to determine rental prices for your property? A rental analysis is a great tool to get started. Here are some factors to consider during your rental analysis.
Location
If you purchase in a more desirable area, then you will be able to charge higher rental prices for your property. Some of the best neighborhoods in Albuquerque include:
- Balloon Fiesta
- Uptown
- Midtown
- Ventana Ranch
- South Valley
- Nob Hill
For instance, neighborhoods like Nob Hill have a rich history, with some homes that were built before World War II. An attractive location will also have a higher cost of living, so potential tenants will be ready to pay more for a desirable neighborhood.
Updated Properties
One of the biggest tenets in real estate investing is ensuring that you have updated rental properties. If your homes have the latest appliances and features, you can increase your rental prices substantially.
Updated appliances are also much more energy efficient. You will be able to save your tenants money on water and electricity bills down the line, which can be an attractive feature when they look for a place to rent.
Amenities
For instance, having areas to walk dogs is important for people who own canine friends. Whether they are service animals or pets, walking paths and dog parks are a sought-after amenity.
If your property is in a neighborhood with children, some other amenities include good schools, parks, and outdoor activities. Neighborhoods with homeowners associations may even have features such as community picnic areas, pools, and gyms on-site for residents to use.
Cash Flow and ROI
It is crucial to ensure that your rental income covers all of your monthly costs. Analyze your cash flow, and how much money you will be bringing in every month. You should aim to at least cover your mortgage, property taxes, and insurance with your rental income.
Most properties appreciate in value over the years, and your property shouldn't be an exception. However, it is still important to analyze whether you will get a return on your initial investment, and how long that will take.
Use These Tips For Your Next Rental Analysis
If you are new to the real estate investing game, it may seem daunting to buy your first property for rental income. With this guide, you can confidently assess how much to charge to turn a profit.
Begin your real estate investing journey in Albuquerque with the right partner. PMI 4U has all of the resources you need to get started with property management in the Albuquerque, New Mexico area.
Want to learn more? Contact us today with any questions or concerns you may have.
