There are a whopping 19.95 million rental properties in the United States, with the majority being owned by individual investors.
Real estate is a popular choice of investment because it requires relatively low maintenance while providing a regular income. It's also a low-risk investment and a good way to expand your investment portfolio.
But you only get these benefits when you invest in the right property. Keep reading to learn about some essential tips for purchasing an investment property.
If you're a first-time investment property owner, start simple. Look for a basic rental property like an apartment or a house with a standard layout in a location that will always bring in tenants.
While a huge beachfront house might seem like the perfect investment property, it's going to have a unique set of challenges. If you haven't started with something simple, it means you miss out on the learning curve, and it's going to be much harder to figure things out with more complex properties.
Research Before Writing Checks
As with any big investment, you've got to do the research beforehand. This is how you avoid being one of the 78% of homeowners who regret their purchase.
Most of these regrets come down to the property needing a lot more money than you budgeted for. These are usually due to:
- Hidden costs
- Unexpected issues
- Too much work to fix it up
- Too many compromises
With the right research, you can avoid spending money on something that just isn't worth it in the end.
Think About Property Management
Property investments have a higher return when you outsource your property management. This means hiring an agency to handle finding and screening tenants and dealing with any maintenance issues as they come up. Otherwise, you'd have to handle all of this yourself.
Some people question how property management services are worth it since it usually makes your property even more expensive. But it's a cost-effective decision.
Property managers have a lot more industry knowledge about real estate. This means they know how to advertise your property, find the right applicants, screen to find the right tenants, and secure long-term residents. From there, they handle all resident-related issues, freeing up your time and ensuring both you and the tenant are happy.
The cost of the entire process running smoothly saves you a lot of money in the long run.
Click here to learn more about our property management services.
Tips for Buying an Investment Property
An investment property is a great way to diversify your portfolio and secure a relatively passive income. But you've got to make sure you're investing in the right property, otherwise, it becomes a money pit.
The biggest investment tips for making a good investment include starting simple, doing a lot of research before making a commitment, and outsourcing your property management once you're the owner.
Contact us to get started in finding the investment property of your dreams.