Before considering buying rental property in Carlisle, PA, there are some key points investors should consider. Carlisle is part of the Cumberland Valley, an area widely recognized for its agriculture. Forbes magazine once named Carlisle one of the top places in the region to raise a family. Carlisle is home to a wide range of residents, from families and military personnel from the Carlisle Barracks and US Army War College. It also hosts students attending Penn State Dickenson School of Law and Dickenson College. Read on to learn what you need to know as an investor before taking the plunge.
Types of Investment Properties in Carlisle, PA
The majority of rentals in the area fetch between $700 and $1000 per month, a slight increase over last year’s numbers. Before purchasing a property, carefully consider what will best match your investment goals. Below are a few examples of different types of investment properties.
- Small Homes or Condos – Starter homes such as townhomes between 900 and 1,300 are a great place to begin investing. Along with having less square feet, they generally have smaller easier to care for outdoor spaces. The size and upkeep appeal to a wide range of renters and these homes appreciate well.
- Multi-unit Building – Carlisle has a plethora of older homes in its downtown neighborhoods. Many have been converted into multi-unit apartment buildings. This can be a great way to invest and generate income. Managing and owning multiple units does have its challenges, though, and you will want to be sure to budget appropriately for unexpected and routine maintenance. The bonus of being closer to amenities, shopping, and restaurants are all a big plus when you begin marketing.
- Larger Single Family – A large and luxurious single-family home sound very appealing to some investors. However, before signing on the dotted line, consider all angles. While a large property will fetch higher rent, you will also pay more as well. High-end homes take additional time to find a qualified renter leaving you to solely cover the mortgage and costs. Large single-family homes may add variety to a sound investment portfolio; however, it is not the best place to start.
Things to Consider Before Buying Rental Property
Buying a rental property for your investment portfolio does not need to be a stressful experience. Yet, the most crucial element of success is preparedness. By doing thorough research in the beginning, you will save a ton of stress later on. Consider these helpful tips below –
- Getting Your Finances in Order: Conventional mortgage loans are the most common finance option. That said, down payment requirements may be higher on an investment property. Sometimes, an investor may need to come up with as much as 25 or 30% down payment. To get the most favorable rates, pay down existing debt, and do your research on various loan terms.
- Narrow Down Your Target Location: Location is a crucial decision to make. Consider neighborhood median income and standards of desirable properties, whether that be single or multi-family units. Visit locations and check out local amenities that may become a desirable asset for future renters.
- Evaluate Each Listings Profitability: Many investors start with at least some idea of the return on investment they are looking for. Consider the purchase price, estimated renovation costs, and how much potential rent you could charge based on the area. Before purchasing, research the local market and look at other rental property pricing and amenities nearby. How will the property you might purchase compare to the competition? As a rental property, your net monthly income will be the total rent minus your mortgage and any additional maintenance costs or fees. Carefully consider these numbers to decide if the margin on a particular property is high enough to suit your goals.
Important Ways to Protect Financial Future When Buying Rental Property
- Start an Emergency Fund: If you already own a home, you know that issues arise, and emergency repairs can come without warning. As a responsible rental property owner, set up an exclusive account for any unexpected costs that can occur. Depending on the age and size of the rental property, you should budget for 1 to 3% of the purchase price in yearly maintenance costs.
- Get Great Insurance: Property insurance is a must for any homeowner but particularly important for landlords. In addition to standard structure and liability protection, look into added coverage for appliances, HVAC, and plumbing fixtures.
We Are Here to Help
Niche.com ranks Carlisle #7 in best places to live in Cumberland County and for a good reason. Boasting excellent schools, scenic parks, and local restaurants just 30 minutes from Harrisburg, Carlisle is perfect for families and young professionals alike. Investing in a rental property takes research, calculated risk, and a solid plan, but you don’t have to do it alone. Hire a full-service Cumberland County property manager. Bay Property Management Group Cumberland County offers a wide range of services in Carlisle and throughout Cumberland County, plus transparent fees to take the guesswork out of managing your investment.