The time of rock-bottom prices are over, but there are still great homes at good prices to be had. Interest rates are still low, home prices are expected to rise only a few percent and the housing market is only in it’s second year of recovery – the question is: Are you ready to become a real estate investor? Ask yourself a few question before you go out house hunting:
- What are your expectations? Rentals are a long term investment – are you ready to keep your homes for 10 years or longer? Have you made a decision if you’d like to manage the property yourself or maybe you’d like to pass the property (-ies) on to a management company? What are your expectations in regards to your return on investment? Have you assembled your “investment pro team” already? ie. Real Estate Agent, Property Management Company, Bank/Finance Professional, Tax Professional and so on.
- What are you looking for? Are you searching for a single family home, a duplex/triplex, or an apartment building? Residential or commercial properties?
- Are your financially ready to invest into a rental? How will you finance your investment? The larger your down payment the more secure your investment is and the earlier you are able to reap the benefits. A down payment of at least 25% and a great credit score will give you the best interest rates. How will any investment in rental property change your tax obligations?
- “Learn” your town: The old saying when buying real estate ‘location, location, location’ , is well known and absolutely true. You can change anything about a property, but the location. Search for a property that is located in an area that has average sales prices but seem to ask for higher rents. Homes within a highly rated school district tend to demand higher rents and rent quicker.
If you have any questions please do not hesitate to call/text me at 719-321-0800 or email me at firstname.lastname@example.org. Maybe I can set up with listing alerts. That way you’ll always know what is trending in your real estate market.