Tips for Savvy Real Estate Investment
Real estate can be a smart investment for anyone with a bit of extra savings in their pocket. But it’s important to have a plan before you purchase your first investment property.
Let’s walk through the top tips for a savvy investor!
Find the Right Neighborhood
When looking for an investment property, you want the most affordable house in the most desirable neighborhood. Specifically, it’s important to look for:
Walkability
Excellent schools
Access to amenities (including hospitals, restaurants, parks, public transit, etc.)
Go Directly to the Seller
It’s easy to assume that the only way to purchase an investment property is to find a real estate agent. However, it’s also possible to purchase your home directly from the current owner. Plenty of homeowners are exhausted by the thought of finding an agent, listing their house, and waiting for the offers to roll in. Instead, they’d much rather find a savvy someone - like yourself - to pay for their home outright.
Chatting with homeowners can be a great way to find hidden treasures that are not yet listed on real estate sites like Zillow or Redfin!
Evaluate Your Costs
When you purchase an investment property, understand that you’re not just paying for the home itself. You’ll also be handling any repairs, electrical or plumbing issues, or any problems with the foundation. Whatever cash you intend to use to invest in the house - make sure you have a little extra on hand for unforeseen problems that might arise.
Know the Risks
Any investment carries some level of risk, but make sure that you don’t leap headlong into some disastrous decisions when purchasing a property. It may seem like a good idea to take out a high-interest loan to manage repairs or renovations; but in reality, it’s best for you and your wallet that you only pay what you can.
When you adhere to the rest of these tips, your property will likely appreciate over time - and you won’t even need to plunge yourself into debt!
