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4 Expert Tips for Choosing an Investment Property

buying-an-investment-property

Are you thinking about buying an investment property? Well, you’re in luck because in this article we are going to give you some essential tips about what to look for in an investment property.

The decision that you make when it comes to the property is crucial because, after all, you’re investing your time, money, and other resources in purchasing this property. We want to help you make the best decision possible.

Tips For Buying An Investment Property

Before you decide to invest in real estate, you must understand somethings first. Its recommended that you do your research because the real estate market can prove to be unpredictable, just like the weather.

1. Are You Fit To Be A Landlord?

When you decide to invest in a rental property, one of the first things you need to understand is that you’ll be a┬álandlord, which can be a full-time job. Landlords are responsible for more than just collecting rent every month.

When your tenant has an issue with air conditioning or heating, it is your responsibility to fix it. You become responsible for payments, repairs, paying bills, and more as a landlord.

2. Decide On The Amount You’d Like To Invest

Before purchasing a property, it is essential to decide how much money you are willing to invest in your rental properties. You should take into account how much work a property may need to make it habitable and estimating the repair costs of the property for the future.

Once you take into consideration the amount that you’re willing to invest, it will dictate how many properties you’re able to purchase.

3. Study Real Estate Taxes

Much like any property you purchase, there will be real estate taxes you have to pay. One of the best benefits of owning rental properties is the ability to use them as a means of tax exemption.

We recommend that you brush up on all of the expenses that qualify for tax exemption. The majority of the costs, such as maintenance and utility payments can be written off when you file your taxes.

4. Study Current Market Trends

Before making your final decision on the investment rental property, you should research the current market trends. The current market trends will give you the information you need about where to invest.

Some of the market trends that you need to take note of are the rates of renting a home, the price of home sales, and more. If you aren’t aware of the trends, you may find yourself with a property that doesn’t make you any money.

Time To Invest

Buying an investment property is a big decision to make. That’s why we provided the tips above to help you make the best decision possible. Remember having an investment property takes also will put you in the position of becoming the landlord.

If you need help deciding on the perfect property to purchase or looking to sell a home, contact us today.

How To Find & Work With a Property Manager

Making the decision to work with a property manager or management company is not one to take lightly. After all, having an investment property is a big undertaking in itself, you defiantly need a reliable property manager to entrust it to. Hiring the right property manager will defiantly make the rental process much easier for you in the long run.

Here are a few tips when looking for one to hire.

 

Do your research.

 

Find out how many other properties they manage and how many are vacant.

 

  • How do they advertise property that is available for rent?
  • Are there any negative reviews about them?
  • Check with the Better Business Bureau and Real Estate Commission as well.

Ask for referrals.

 

Real estate agents are a great resource when looking to hire a property manager.

Ask around to other property owners, who do you know that also has rental property? Who do they use? Check with the Better Business Bureau and Real Estate Commission for this as well.

 

Meet with them in person before hiring them.

 

Often your first impressions are the best way to decide. Meet with him/her to get a sense of their professionalism, knowledge etc. Get clarification on how they can be reached, text, phone call, email etc. There is nothing more frustrating than hiring someone to manage something and they are difficult to reach when needed.

Look over the contract with a critical eye.

 

If something seems off or unfair, ask for clarification. Do not sign anything until you are certain that this property manager best suits your needs. Also make sure the costs are in line with your expectations and other companies.

Property management is a competitive field, doing your due diligence will pay off and you will enjoy the extra income the rental property can provide by choosing the best person/company for the job.

Looking for more tips on real estate?  Check out these recent posts:

 

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