Your First Real Estate Purchase, Why it Should be an Investment Property

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Real Estate Agent with Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities #1 in Forest Land Mgmt
REAL ESTATE NEWS
Brought to you by Bob Crane
 
Your First Real Estate Purchase, Why it Should be an Investment Property
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For RentNot ready to buy a home for yourself but want to take advantage of great market conditions? Consider buying an investment property! It's a trend that's taking over real estate, as savvy investors look to put their money in an appreciating asset. Here are five reasons to consider it.

1. Rates are crazy low. Lower rates mean more affordable lending, or more for your money if you choose to reach higher.

2. Because it will appreciate. According to CoreLogic, "The overall home price index (HPI) has increased on a year-over-year basis every month for seven years." The long-term price appreciation of real estate can provide one of the safest investments out there.

3. Because passive income is good. Yes, it's nice to know there will likely be appreciation over time, but the real key to success with investment properties is passive income.

"The best part about rental properties is that they provide a stable income," said Mashvisor. "What would be better than having a check sent to you every month? In order to have positive cash flow, you have to make sure you invest in a profitable rental property."

4. To turn it into a short-term rental. The short-term rental market has opened up a new world of opportunity for investors. By buying in the right location—by the beach, near a ski resort, or in close proximity to a popular annual event like Coachella, you have the potential of making a significant return in a short period of time. Just be sure to check the local laws, as lots of cities have been cracking down on Airbnb and other services.

5. Because it can help you buy the home of your dreams down the line. "Buying an investment property before your first home does not imply that you won't have the funds to purchase your actual home at some point," said Mashvisor. "In fact, investment properties that have been purchased wisely and have grown in value can offer you a sizeable amount of wealth and equity."
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Rainmaker
3,448,717
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Call me crazy but you should buy your first property so you have a home... then when you realize what a great investment it was... maybe you should consider this as a better investment that to buy IBM stock... just sayin...Endre

Sep 20, 2020 11:00 PM #1
Rainmaker
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James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Bob.

Knowing my temperament, I would not make a good landlord. While I know it is a good investment, it is just not for me

Sep 21, 2020 12:56 AM #2
Rainmaker
232,643
Realtyna Inc
Realtyna - Newark, DE
Realtyna- MLS RETS Integration software & services

Interesting idea, Bob. Thanks for sharing.

Sep 21, 2020 02:13 AM #3
Rainmaker
3,717,686
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Bob. Must say, an interesting take on real estate ownership. It may have its place in some circumstances. Enjoy your day!

Sep 21, 2020 05:27 AM #4
Rainmaker
5,986,624
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Monday morning, Bob.

Take care, be safe and have an outstanding week.

Sep 21, 2020 05:52 AM #5
Rainmaker
5,445,398
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Bob Crane actually, a first time buyer would be wise to purchase a two or three family home and live in one unit.... that's called having your cake and eating it, too.... 

live in it for a couple of years and then refinance to pull some cash out to purchase a single family home.... rent out the unit you lived in....  works well!!!

Sep 21, 2020 06:03 AM #6
Rainmaker
3,738,510
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Bob - an investment property(especially one where a person can live as well as rent other units) can make an excellent start in real estate.  It can then snowball to other life strategies.  

Sep 21, 2020 06:24 AM #7
Rainmaker
3,538,580
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Bob,  good advise for buyers and my girl started with purchasing her first home and then another and rented it out and now has 8 places for collage tuition for the kids.

 

Sep 21, 2020 07:57 AM #8
Rainmaker
2,256,021
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Bob Crane - well evey transaction is an investment.  If you don't own you should buy now.

Sep 21, 2020 09:59 AM #9
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bob real estate is a great investment, and right now is a great time to buy.

Sep 21, 2020 04:17 PM #10
Rainmaker
1,428,280
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Bob Crane - You make a lot of good points but to me, the first property should be the place you live in.  It is an investment on its own merits. It helps one understand real estate and realize how they should move forward in the future with their second purchase. 

Sep 21, 2020 05:42 PM #11
Rainmaker
4,449,263
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Bob, I too think a first home should be your own home.  With Colorado's evictions not being able to be enforced right now, a landlord needs to have a good nest egg too.

Sep 22, 2020 06:42 AM #12
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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I started investing in real estate when I was 19 and have never lost a penny on any of my investment property.

Happy Sunday Bob Crane 

Sep 27, 2020 08:12 PM #13
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