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Top 7 Real Estate Investment Tips

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Top 7 Real Estate Investment Tips


 

  1. Buy a Rent Ready Property

When looking at properties to invest in you do not want something that will need to be repaired or remodeled before renting. This will take time and funds that take away from the rental investment.

 

  1. Use Leverage to Buy the Property

Seek a professional when it comes to financing your investment. There are ways you can use current assets as leverage for a mortgage on your rental income property.

 

  1. Balance Your Risk

Choosing the right home is just one factor in balance of your risk. You will need to look at rental incomes in a given area. Along with carrying costs and absorption rates. This is why it is important that you work with the right realtor to get the best investment property for you.

 

  1. Be Aware of Rental Restrictions

If you find a home in a gated or deed restricted community, it is important to know if there are any rental restrictions. Some communities have regulation as to the # of rentals and length of rentals allowed per year. These rules would be a major factor in your rental opportunities for the home.

 

  1. Focus on Your Return on Investment

When you are looking at the investment you need to look at you return on investment. There are many factors of your return such as rental time, leasing cost, maintenance insurance, and taxes. It’s important to focus at you ROI when deciding which property to invest in.

 

  1. Work with a Property Management Company

It takes time and resources to manage your own rental property. A property management company will help find you the right renters along with doing things like background checks and collection of rents. And should you choose some property management companies will even handle issues like a potentially broken A/C.

 

  1. Invest Enough to be Cash Flow Positive

If you do not pay cash for your investment you need to put enough cash down so that you can be cash flow positive right away. Thus allowing for you to have a positive ROI easier than if you put less cash down.


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