Flip | Long Term Hold | Vacation Rentals
Whether you’re purchasing your first investment property or are a seasoned investor, we’re here to help! We’ve got a team of skilled agents who are focused on finding the best property to meet your needs and goals.
Things To Consider Before Investing
The Market You’re Buying In
Carefully analyzing the neighborhood your potential property is located in is pivotal. What does the future hold for this city or region and how will it affect your property’s price/value should you decide to sell it? It is also important to keep a close eye on developing area’s nearby, trendy upcoming neighborhoods can significantly affect a potential buyers interest in your property.
Return On Investment
It’s only wise to invest in a property that will give you a high return on your investment. Do not avoid properties simply because they are need of some renovations, as the flaws will help you buy cheap and sell high after renovating. In fact most seasoned real estate experts will suggest that you had better buy a structure that needs renovations to help maximize potential profits.
Real estate comes in various shapes and sizes which can easily translate into different prices. As a buyer this can result in serious temptation to spend beyond your means but that shouldn’t be the case if you’ve prepared a budget. By consciously planning the money you can afford to spend on property you will be able to make a successful investment and avoid future losses. As you plan the budget remember that most expensive does not always equal to the best quality. In light of this, you should prepare your budget around other factors that would make the property appealing to you.
Pros & Cons of Owning Investment Property
Interest Rates – With mortgage interest rates in the range of 3.75% – 4.25%, you can lock in the biggest wedge of the cost pie at those low rates for 30 years.
Tax Deductions – Mortgage interest, insurance and all of the other expenses of maintaining a rental property are deductible against its income.
Vacation – If it’s a seasonal rental, you can use it yourself for two weeks without jeopardizing the deductibility of the expenses.
Offset Expenses – You can even treat a unit in your own home or on your own property — a garage apartment or mother-in-law apartment, for example — as a rental and lay off a share of the mortgage interest and other expenses against it’s income, thus reducing your overall cost of living.
Cash – The biggest caveat is that real estate is not liquid.
Unexpected Cost Increases – The interest and principle parts of your mortgage may be fixed, but there is no guarantee that taxes will not rise faster than you an increase rents, or that insurance premiums won’t spike.
Tenants – Despite your due diligence in vetting prospective renters, you could wind up with a tenant from hell, one who is needy and demanding, pays late, won’t turn off the water, can’t change a light bulb, and whose friends, followers, children and pets leave a trail of destruction behind them.
Landlordhood is not for everyone.
Repair Cost – Minor repairs are most economical if you can do them yourself, but you may not have the time, tools, or skills.
Which Type of Investing Is Best For You?
Real Estate Investing has many strategies. And as wonderful as it is, it’s easy to get overwhelmed.
FLIPS – Flipping houses isn’t just about visualizing how to change a home; it’s also about being able to actually sell the house when you’re done renovating. Whether it’s your first flip or your 30th, having an experienced real estate agent on your team can boost your likelihood of success significantly. You’ll also want to have a good lay of the land on the local real estate market.
LONG TERM HOLD – Looking to build your investment portfolio with long term holds? Ready to be a Landlord? Long-term rentals could be the way to go. Learn tips for the best rental features and tips for new Landlords.
VACATION RENTALS – Want to make a little money on that second home while you’re not using it? Vacation Rentals are all about location and amenities. Discover is self-management is the right fit for you or what to look for in a property management company? Vacation Rentals can bring in serious money, but you have to do it right.