5 Things to Consider when Buying a rental Property in Phoenix

Phoenix may have taken a hard hit during the recession, but it's bouncing back better than ever, which makes it a great time to buy rental property. It's a big investment, but one that can pay off really well in the long term. However, considering the commitment you'll be making and the amount of money you'll be shelling out, it's important to take your time and properly go about the process. Before you run out and buy any home on the market, here are five tips for buying rental property in Phoenix.

 Figure out your budget

 The average home price in all of Maricopa County in 2014 was $257,902 while rent averaged $1,287. You'll find houses in a lower and higher price range, of course, but the key is to figure out your budget so you know where you stand. The best way to go about this is to get pre-approval, which not only helps you know your budget, but also makes you look more serious to sellers.

 Do crime research

 The last thing you want to do is buy a rental property in a crime-ridden area, so it's important to do your research. The Phoenix Police Department offers hotspot maps for property crimes and violent crimes, so you can judge for yourself where the best places are to buy your rental property.

 Buy close to entertainment

 Those who rent in Phoenix want to get out and experience everything the city has to offer, so make sure to choose a rental property that's near a good amount of restaurants and entertainment. Another option is to buy near a location that's smack dab between outdoor activities and the downtown area so renters will be near everything while still getting the best of both worlds.

 Decide what you'll do with the property in the future

 Should you decide you're going to move to the home in the future, you'll want to choose one that's something you would actually want to live in. It's much less of a hassle to pick a home now that you love rather than just choose a rental property and have to buy a new house later on. When you're shopping for a rental property in Phoenix, ask yourself if it's something you can see yourself living in should it come down to that.

Decide on the size of the home

You have to decide about the type of property you feel comfortable renting out. For example, if you only want to deal with singles and couples, a one bedroom is adequate. For families, consider upgrading to a 2-bedroom or 3-bedroom. If you're going to market the home more toward a large vacation rental, such as in the case of renting to a large group, then a home with four or more bedrooms is ideal.

Phoenix has a slew of different properties to choose from that you can convert into a rental property, so it's best to come up with a plan of how you want to handle it before you run to a realtor. Whatever area you choose to buy in, make sure to pick a realtor who deals specifically with that area and knows the market. They'll be able to help you make the right decisions for what will work best for you.