Investing in Residential Properties
When investors decide to acquire rental properties, they must first decide what they want to accomplish, and over what period of time. The same principle that is used in any sound investment strategy or financial plan should be used in the rental housing business. Residential real estate investments can be rewarding. Since buying investment property can be complicated you should consult with an EXIT Team Realty agent. They are experts in this field and can help you find the property you are looking for.
It is very important to understand that owning and operating rental property is not just an investment, it is a business. Before you purchase any property you should have a plan for how you intend to manage it. You can learn to do it yourself or get assistance by taking courses and joining investor websites. You can also hire a professional property manager to operate you business for you. Property managers typically charge a percentage of gross income. This usually varies from 5% to 10% of gross income, often with an additional charge’s for new leases.
Single family homes and multi-family property are a good choice for first time investors. They are usually the most widely available form of housing and easy to rent. Your EXIT Team Realty agent can help you with setting up your financing and finding the right property for your investment.
To maximize your return, shop for investment property much in the way you'd buy your own home. Consider fixer-uppers that don't need major upgrades. Buy the cheapest home in the best block or buy into the cheapest neighborhood in the best community. Buy in areas where demand for housing will eventually exceed supply. And if possible, buy in a down market to later enjoy the equity-building benefits of an upturn. Because you'll have to keep tabs on your property, it's wise to buy it within easy access of your own home.
If you don’t have the knack and the time to manage tenants and property, your costs will include hiring a property manager. Along with advertising vacancies, screening tenants and looking after maintenance, a property manager can also help you project how much you can charge for rent, make sure you perform required disclosures and fill you in on renters' and landlords' rights.
A landlord's success now depends on whether they are capable of finding, fixing and providing rental property profitably, at rents determined by forces that have little to do with a free market, or landlord's cost of doing business. One of the experienced agents at EXIT Team Realty can help you find the perfect property for your investment purposes.
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