Investing in a rental property is an increasingly common way for individuals to grow their income. However, not all real estate investments end up being profitable. If you choose the wrong location, you're likely to end up losing money and putting all of your personal assets at risk. Fortunately, you can distinguish the quality locations from the rest by placing the following attributes on your property-buying checklist.

3 Qualities to Look For When Investing in a Rental Property

1. Low Crime Rate

A high crime rate can kill a property's potential profits, regardless of your desired demographic. Whether you hope to attract students or young families, renters want to feel safe in their temporary home. Not only should you focus on the current crime rate of the area but also look for trends in the surrounding locations. If a nearby neighborhood has experienced a spike in crime, it could negatively affect your property in the coming years.

2. Profitable Neighborhood

The neighborhood is one of the biggest factors to consider when investing in real estate. Your goal is to choose a location that will make you money, so focus on areas with short listing times. A quick turnaround indicates a highly desirable neighborhood. For a rental property, this quality means you won't have to worry about long periods of time without income.

3. Marketable Amenities

Another valuable quality is nearby amenities. During your property research, look for real estate that's located near attractions that are desirable to your demographic. For instance, young families and older adults are often drawn to areas with easy access to trails, parks, or schools. Active millennials, on the other hand, typically prefer properties close to gyms and nightlife. Choosing a real estate investment with the right bragging points will give you the upper hand when attracting tenants.

Investing in a rental property is an excellent way to grow your assets and increase your income, but it's important to choose the right one. Find the perfect piece of real estate for investment by turning to JoAnn Meier at RE/MAX First Choice in Waterloo, IL. Boasting over 30 years of experience, she offers a plethora of knowledge into the local market. You can utilize her valuable expertise to find a location that matches your property checklist. Begin your investment property search by browsing her online real estate listings, or receive personalized assistance by calling (618) 939-6003.