When someone buys a Sedona AZ Home for Sale many times they want to rent it out until they can totally relocate to the area. I got the following tips from Ryan Moeller from Bigger Pockets and I want to share them with you.
1. Don't count on Appreciation. That's a bonus
2. Watch your loan-to-value ratio. Ideally, the total cost of the purchase, fees, and repairs should be no more than 70% of the appraised value of the property in good condition
3. Maximize annual return. Aim for properties that can be rented for at least 1.5% to 3% of the purchase price. I.E. Plan to pay no more than $50,0000 for a property that can be rented for $750.00 per month. Now in the Sedona AZ Home market and the Sedona Real Estate market - those figures will be hard to reach.
4. HAVE An EXIT strategy. Seek properties that are attractive enough to have value no matter what happens to the market - as rentals, for sale to other investors, or for sale to somebody who plans to live ther via conventional financing or lease purchase