If you’re thinking about investing in real estate, I have some great tips to share in order to get you started. Here’s what you should know.
If you’re out there considering making an investment through real estate, I’ve got some expert advice to share with you today. These tips will help you make the most out of your investment:
1. Hire a professional to help you find a property. They will have access to more listings and better deals than you’ll find online. They should have experience in working with multi-family properties and understand your cap rate, etc.
2. Determine what to buy. Some people buy a single-family home to rent out, others buy a duplex and actually live in one unit for a couple of years to save some money. This is really the easiest way for most young couples to get started having investment properties. It’s a great way to acquire investments without having to put as much money down. If you don’t live in the investment you purchase, the down payment is going to be much higher at around 20%. Most wealthy people in the history of this country have built a considerable amount of money via real estate.
3. Long-term or short-term rental? There are pros and cons to both. Long-term rentals are more stable and healthy. Short-term rentals like Airbnb are rented for considerably higher, but are a lot more volatile. You’ll have to determine which kind of situation suits your needs best. If you do choose a short-term rental, know that you can rent it out about a third of the time of a leased property and still make the same money. You will have to spend more on maintenance though.
4. Determine who will take care of the rental. Are you going to self-manage the property or do you need to hire a property manager? It really depends on your net income. What kind of net income are you comfortable with?
If you have any questions for me or you’re interested in taking a look at some local investment properties, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.