Many property investment strategies can give you the advantage you need to get a better return on your investment. In my experience, however, a few stand out, not only because they consider the whole picture but because they focus on the basics of real estate investment, as well.
Before closing on a real estate deal, consider these five tips.
Consider Renter Appeal
Just because you can get a good deal on a house doesn’t mean that it will bring in enough money to be worth the effort. When making the decision to invest in a property, think about what your ideal renter is looking for in a home or place of business. Don’t just focus on repair costs and financing. In the long run, attracting tenants will drive the return on your investment. Some common factors to consider include a good school district, transportation options, and local amenities and attractions.
Look at Maintenance Costs
When you invest in real estate, the price of the sale is just the first cost you have to deal with. All effective property investment strategies consider the ongoing maintenance costs of a piece of real estate. This is why you need to inspect your intended investment before you sign anything.
Is the Property in Good Condition?
Following from the previous property investment tip, it is also wise to hire a professional to take a look at a property before purchasing, especially if you live in another area and can’t view the property yourself. The most important factor to consider is whether the property is structurally sound.
How Much Are Taxes?
Most property investment strategies consider the cost of taxes. But no one knows what taxes will look like 10, five, or even three years in the future. It’s important to study the taxes on a property from previous years to gauge how much you might be paying in the future.
Get Your Hands on the Financial Statements
Get your hands on the financial statements of a rental property before going all in—this is one of the property investment strategies that many new investors forget about. This may limit which properties you want to look at since many self-managing landlords do not keep thorough statements, although you can always estimate what the running costs are on a rental property.
Contact us after you’ve considered which property investment strategies are right for you!
As an investor in real estate, you know that you’ve got to protect yourself, and that means making sure everything is in order before you sign any closing documents. If you’ve already judged a piece of real estate to be a good investment and want to begin the closing process, contact The Law Offices of Granda & Associates today. We are the experts you need on your side to ensure that everything goes off without a hitch.