Whether buying one or five investment properties, there are always a few things to keep in mind to help you be a successful real estate investor.  Therefore, I would like to share a few tips for Buying an Investment Property.

When starting off, you don’t have to be a millionaire with all cash in the bank.  There are thousands of real estate investors out there who aren’t all cash buyers.  People who are not rich can also make solid investments and see positive cash flows if they know how to invest successfully.

Things to consider when investing in real estate:

Location, Location, Location

The location you choose is the most important factor part of a successful real estate investment.  But, you also have to choose a location you can afford.  The location you choose will definitely determine the type of tenants you will attract and how much rent you can charge.  Try choosing a location that will appreciate in value over time and be less susceptible to the ups and downs of the real estate market.  A real estate professional can help you with these important decisions.

Don’t Go Overboard

If you decide to buy a fixer-upper, you don’t want to go overboard.  You don’t have to have granite countertops in your investment property and stainless appliances.  This only holds true when you are selling the home.  Your investment property will be getting wear and tear from tenant after tenant.  Almost all tenants are perfectly happy with units that are clean, light and bright.

Think Long-Term Investment

In today’s real estate market, you don’t even want to think about flipping a property.  You want to hold your investment for at least five to ten years.  So, think long-term investing when you purchase.

Have Some Cash on Hand

Buying a non-owner occupied real estate property today requires at least 25%-30% down. So, be prepared to bring cash to the table.

Calculate Ownership Costs

Make sure you are getting a good investment by calculating the costs first.  This includes all expenses of owning and managing the property, not just how much you will be paying on the mortgage.  Your expenses should include property taxes, insurance, maintenance, repairs, vacancies and utilities during vacancies.

Be smart about your real estate investment and you will soon see a positive cash flow that you can enjoy. However, be sure you are saving what you need to to cover your expenses.

Keller Williams Arizona Living Real Estate ~ Realtor® Cheryl Westwood