Are you interested in investing in real estate, but not sure when or where to get started? Don't worry, you're not alone. Whether you're considering short-term or long-term rentals, house rehabs, or foreclosures and short-sales there's rarely a bad time to get started in real estate investing. While interest rates are up, so are rental rates and foreclosures--this isn't 2008 but there are definitely opportunities to be found. With guidance from knowledgeable and experienced investors and real estate agents you can get started today, but before you dive in head first here are a few things to consider.
First, consider what type of investment property is best for you and your family.
If you are thinking about a rental property, such as a vacation condo or rental home, consider how much time will be needed for things like maintenance, managing a website or rental listings, and vetting potential tenants. For rental homes, make sure the areas you are searching are attractive to tenants in terms of proximity to nearby business centers and transportation hubs, and in good school districts for family tenants.
Is a family vacation property more to your liking? Make sure you read any and all rules pertaining to owners and guests, as well as rules on renting your property out when you are not using it, if that is something you plan to do. Also be sure that your vacation property is somewhere you foresee your family wanting to travel to often enough to make it worthwhile.
For new house flippers, you want to find out what return you can expect to get in your market area and talk to contractors and suppliers to get realistic estimates on renovations, both in terms of price and time to completion.
Here are some additional Do’s and Don’ts for investing in real estate:
Do aim for at least a 15% return on investment.
Do look for homes priced in the low end of the median price range.
Do look for 3-bedroom, 2-bath single family homes for rentals or flipping.
Do focus on one neighborhood or area.
Do purchase rental properties close to your home if you plan to manage them yourself.
Do use one real estate agent to help with all your buying and selling needs.
Don’t purchase a second property until the first is earning revenue.
Don’t buy properties that you wouldn’t want to manage, even if you plan to use a property manager.
Don’t buy a home that you cannot afford to carry for several months in case of a slow market.
Don’t buy a home or condo without having inspections performed.
Don’t buy without title insurance.
Don’t buy more properties than you are able to manage.
If this is something that peaks your interest, we would love to help answer any questions you have. In our 20+ years of real estate investing we have seen and experienced a LOT and we would love to share that knowledge with you.
