Buying rental properties in Salem, Oregon is a proven, profitable and relatively safe way of investing in real estate. However, many beginning investors make some deadly mistakes that end up costing them thousands of dollars. Read this page carefully so you know what these mistakes are and how you can avoid them.
Mistake #1 - Not Carefully Researching the Area
There are two things you must know before making any real estate investment in Salem, Oregon.
The first is you must know the comparable rental rates in the area. Check for the comparable rates for units like the one you're considering. Remember to factor in vacancies and maintenance if you can.
It's also important to understand the taxes and laws for the particular property in Salem, Oregon you're considering investing in. If it's a condo, special laws may apply. If the building is old, there may be code violations. For your particular investment, it's important that you know which laws apply and where you stand. Check with your local county building officals. Salem is the State Capitol so that's an easy job.
Mistake #2 - Overestimating Income and Underestimating Expenses
For beginning investors, it's very important to work conservatively. Most investors overlook how much maintenance, vacancies, repairs, etc will cost and don't check rental histories closely enough.
As a general rule, you want to have at least 20% padding to ensure that your investment is a safe one.
Mistake #3 - Taking on a Tough First Project
Beginning investors in Salem, Oregon, who take on difficult first projects often find that they've gotten into something that's over their heads. Instead, for your first project, invest in a property that is a fairly easy investment.
In other words, avoid investing in rental properties that require more than minor cosmetic repairs. Find and purchase properties that you can have up and running quickly, so you can get more experience with the closing and investing process quickly.
By avoiding these 3 mistakes, you'll be well ahead of most other beginning real estate investors.
There is a lot of free information available to you about buying, selling or investing in Salem, Oregon real estate. For complete information about the Salem, Oregon real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Salem, Oregon real estate at http://www.buysellsalem.com . Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 503-930-8880 or email me at aprilmoore@cboregon.com.
Comments(0)