Yes, bad news regarding real estate is all around us. It seems everywhere I turn, radio or TV news, websites, even family gatherings are full of people complaining about the recession and how real estate has taken a HUGE hit. They are right, however it is not ALL bad news.
Now is one of the best times ever to purchase income property. Low home prices, combined with low interest rates and thousands of people looking to rent instead of own, make this a real estate investor's ultimate dream. Let's review: money is cheap to borrow, and investment properties are cheap to buy. But before you jump in to the rental property market, pay attention to these five important tips for first-time income property investors!
1. Know your property options - You might think this goes without saying, but many first-time investors don't fully appreciate all the types of investment property options out there. Are you interested in restoring a run-down property and flipping it for quick cash? Or renting out a family home to a steadily employed couple? Or perhaps you are interested in commercial properties like a small apartment building? While you explore your options, be sure to consult an expert.
2. Seek wise counsel - A funny thing about humans is how often we try to accomplish things by ourselves! So many times, we could have avoided that horrible vacation deal to Hawaii simply by visiting the travel agent down the street! Just like travel agents or tax accountants, there are plenty of qualified experts waiting to advise you while you search out a promising investment property. Instead of hunting down the nearest real estate agent, however, choose an investment company that is keenly experienced with rental property investing. Another option is collaborating with someone experienced in real estate investing - oftentimes active investors are looking for more "partners"... (but we don't recommend this, ask us why!).
3. Location, location, location - The old saying still rings true. The most important element in real estate valuation will always be location! Not only is this true in ALL real estate, but ESPECIALLY for investors looking to rent out the properties they purchase. Why? Because you need to make sure there are people in that market looking to rent! Going after high population areas with growing job markets is key - look for property in safe neighborhoods with good schools in the area, and nearby other amenities like shopping malls and public transportation. There are many other possible tricks - such as finding property nearby a large university in order to attract college students on a time crunch!
for point 4-5 continue reading...
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