Real estate investing!! #batonrouge #rentalproperty

Investing in rental properties can be a wonderful investment and a great hedge against inflation.

Someone scrolling through homes should have a basic idea of what to pay for a house and what the expected monthly rent should be.

We like to use the 1% Rule. If you can receive 1% of the purchase price in monthly rent in the Baton Rouge market, it’s probably a sound investment. $160,000 purchase price and $1600/month in rent will work. This can vary greatly across different markets.

I know investors fall in love with homes, but you can’t be emotional with the purchase. It’s all a numbers game.

In the Baton Rouge rental market, landlords should be able to get at least $1/sf of the house in monthly rent. If your home is 1600 square feet in living area, you should estimate to rent it for $1600/month. Now it can be much higher but this is a good starting point when doing a quick evaluation.

If you are looking to buy or sell your home in the Baton Rouge area or need property management services, shoot me an email at jeremy@smithhearn.com

Jeremy Farriel is a licensed real agent with Smith Hearn Real Estate in Louisiana.

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