Investing in real estate has a lot of benefits. Think about having an apartment or home to rent out, which instantly begins giving a tremendous monthly return. However, many feel intimidated when they approach the world of properties and realtors. So, here are some great tips for both new and experienced buyers to remember when looking at an investment property!
If You’re Just Starting Out
For newbies to the real estate game, take some time, and do some research. Soon, you’ll realize that, while there is technically a “product,” real estate is nothing like selling art or anything similar. Personal taste often takes a back seat for rents while needs play a lead role. And that’s just the beginning of the wide world of real estate investing. So, take some time, hit the library and internet, and do some research before starting!
Talk to Some Professionals
Many forget that investment properties come with many additional fees: property taxes, operating costs, a property manager, and so on. You’ll want to talk with your finical advisor and realtor, taking some time to come up with a reasonable, established budget. Also talk about your goals for the property, including the average vacancy rate or any remodeling that might take place. Furthermore, see if anyone in your family or close circle has experience renting a property. If there is, chances are, they can give you some helpful hints!
Location, Location, Location
When buying an investment property, remember to think bigger. Check out the neighborhood and any close-by malls, shopping centers, and so on. Of course, it’s not for you, so try and think with an outsider’s point of view. Talk to your realtor about who you’d like to rent to, so you can highly potential perks. For instance, looking to rent to students? Research nearby colleges, transport hubs, and nightlife! Also consider how far you’ll be from the property, in case you ever want to check in on it.
A Little Work Can Go A Long Way
When looking at investment properties, be sure to look at similar homes that might not be in the best of same. Is there a similarly sized, but less expensive, home that only needs a little elbow grease? That’s likely a better buy! After all, it might only require a little extra cleaning, a fresh coat of paint, and a few minor repairs! Don’t waste potentially thousands of dollars to avoid a weekend of work.
However, don’t go too far the other way. A major fixer-upper can quickly become a vampire, draining you of time, energy, and money.
Stick to the Basics
Remember, this is about investing, not about becoming a superstar. Stay away from the castle-looking home that makes your heart flutter and settle for something more casual. First, it will cost less, reducing potential loss. Second, more renters will actually want to live there! A smart, casual condo will meet renters’ requirement far more than a massive mansion with a waterslide in the backyard.
It doesn’t matter what kind of return on investment you’re looking for, real estate can often provide it. Hopefully, this guide has helped you narrow down what type of house or apartment is best for you. Don’t forget to contact your financial advisor for any questions!