Even with recent slight increases, interest rates remain historically low. So, now is a great time to start investing in real estate. But if you’re new to property investing, how would you know whether a particular property would make a good investment? Details such as location, sales price and profit expectations are important considerations for first-time buyers interested in acquiring a rental property.
Key Rental Property Concerns
The key to successful investment is learning about the real estate market in general as well as details about real estate of interest. So, if you’re pondering buying income property, consider not just the purchase price.
Also, remember to include the projected additional costs such as maintenance and repairs relative to wear and tear:
- Take a realistic look at your finances to determine how much you can afford to invest.
- If you might require a loan to purchase rental property, consider interest rates and shop around for a loan with good terms.
- Determine where you want to invest. To select the right location, check out area amenities, crime rates and the average cost of homes.
- Check out websites that offer detailed information and photographs of available listings.
- Document the location and sales price of income properties in your price range.
- Hire experts in real estate, finance, and property management. Protect your investments by surrounding yourself with competent professionals.
- Tour properties at different times of the day so you will be aware of everything that could potentially detract from the value of the home.
- Once you’ve settled on a geographic area, research rental rates of comparable homes.
- Tour the inside and outside of potential properties. And don’t forget to open closets and cabinets to see if anything lurks behind closed doors.
- Assess the condition of floors, appliances, walls, and other features that are prone to wear and tear.
- Find a licensed home inspector to examine potential investment properties.
- Consider expected costs of necessary upgrades and repairs.
- Make an offer on properties that fit your budget and real estate goals.
- Try not to get emotionally involved. To think like an investor, you should be prepared to walk away instead of over-paying.
No matter how much investment experience you have, to wisely invest in rental properties, hire a trusted mortgage broker and a real estate agent, as well as professional property management. This team will be happy to help you seamlessly navigate home-buying, rehabilitation, renovation, and rental.
About SoCal Platinum Properties in San Dimas, California
At SoCal Platinum Properties, we offer unique perks to clients who list their home to sell with us. One benefit that we provide, which most other realtors do not, is that we will pay for and arrange to have a home inspection before we put your home on the market. The reason we do this is because we want to eliminate potential potholes down the road, when prospective buyers could use items the home inspector uncovers as an excuse to pay less than they bid. What’s more, resolving minor repairs on the front end often means you can ask more for your home rather than selling it “as is.” To find out more about how to take advantage of this perk and list your home with SoCal Platinum Properties, call (213) 709-5178 today or compete this contact form.