Real estate investment can potentially be very lucrative. But the primary obstacles you have to overcome can be unnerving. Here are some essential tips for your first time buying an investment property without any prior experience.
Tips for Buying Your First Investment Property: Work With an Agent
Agents are available for hire for just about any real estate transaction. Whether you’re buying or selling, an agent can be a very advantageous person to have on your side. Different agents have different skill sets and experiences, but generally, a good agent will be familiar with your local market’s landscape.
They might have tips about where to list the home or where to look to buy. They’ll know if a price is within the appropriate range or far outside of it. Most agents will ask for a percentage commission. Make sure the agent you pick is experienced in investment properties and also knows which parts of your town are best for such expansion.
Choose Something Low-Maintenance
Repairing, renovating, and maintaining an investment property can be a pain for everyone–but you will indeed find such tasks a lot more draining as a beginning investor. These elements, after all, will be what you are contractually expected to uphold. Maintenance will be your job; the tenant will contact you when they need help.
That’s why it’s a good idea to pick a property based on how much maintenance would be required. Newer properties in better condition are a safe bet. Condos don’t require as much time because the HOA takes care of exterior maintenance. Stay away from fixer-uppers unless you are sure you have what it takes to flip.
Tips for Buying Your First Investment Property: Play It Safe
This goes for just about every aspect of investment. Do thorough research beforehand. Make sure you know what you’re getting into. When hiring an agent, read reviews from their past clients. When considering homes, know the economic direction of their neighborhoods. Consider factors like neighborhood safety, walkability, and proximity to schools and stores. It might be best to avoid options that seem a little bit risky. If it is at all plausible, you should prioritize safer investments until you have a wider financial base that has been established.
There is no such thing as a completely risk-free investment. But real estate tends to be a lot safer than, say, trading stocks. Properties will always be valuable to own and they tend to appreciate over time. With the proper research under your belt, you should have nothing to word about.
Did you enjoy reading this article? Here’s more to read: How to Tell if a Property Makes Financial Sense
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