Be aware of the effort you`ll need to put forth
If you do not use a REALTOR® to find the properties that you are looking to buy, then you will need to do a lot of legwork on your own. Your REALTOR® will have access to huge databases of possible properties for you to look at and will be able to narrow down the available properties in your area based on your specifications. Your REALTOR® also will have firsthand knowledge of properties as they are listed, including short sale and foreclosure properties that can sometimes be purchased for far below market value.
Be aware of the need to manage the property or properties that you purchase
There is more to owning an investment property than simply finding a tenant and signing a lease. Your property will need to be kept within local code and will need to be maintained and watched over. You will need to have a process in place for accepting rental payments and for performing inspections of the property from time to time. Many times, an investor will hire a REALTOR® or an agent that the REALTOR® recommends to handle these issues for them. Your REALTOR® can guide you through the process
Be aware of the attributes of a great investment property
If this is your first time buying an investment property, you may not be aware of where to look for the best properties for your portfolio. A driving factor is location. The closer to the center of things in your area, the more rent your unit can command. As a rule of thumb, the heavier the traffic, the easier it will be to rent the property and to command a good price for rent. If your property is located close to a major employer, like a hospital, university, or a large corporation, you can usually demand more rent than one that is twenty minutes away. Likewise, you want to find properties that are low maintenance so that you`ll have fewer headaches and expenses down the road. You should also look for newer homes when possible, as there will be fewer building code issues or maintenance problems. And last of all, look for properties in stable neighborhoods that are experiencing growth
Create a good team of professionals who can assist you to build your wealth
It is critical for you to start with a team of competent professionals to assist your projects and protects your assets. Your members include the following:
- Real Estate Attorney
- Real Estate Consultant / Licensed REALTOR®
- Licensed Home Inspector
- Licensed Home Appraiser
- Licensed Contractor & Handyman
- Professional Property Manager
These are just a few of the things that you need to be aware of when selecting an investment property to purchase. I am a licensed REALTOR® and I would love to be a part of your team! Contact me to find out how I can be your guide to finding and successfully making offers on investment properties that will make you money!