How to buy and sell investment real estate property:
The housing market is as hot as ever, making this a great time to sell and buy new homes. If you are looking for some supplemental income, then you may consider purchasing an investment property or starting a business where you manage multiple investment properties. Whatever you choose, you need to have a plan of action, and the Jessica Baker Team can help. We are real estate experts who can help you find the best properties for your investment money, so we have tips on how to make your first foray into investing a success.
How to Purchase an Investment Property
If you are a single person looking to purchase just one investment property then the process is very similar to when you buy a regular house, with the biggest difference being that you plan to rent out the home or sell it to someone else. There are many ways that you can purchase an investment property, including buying on your own, using a real estate agent, or going through a crowdfunding source.
For those who choose to turn buying and renting out investment properties into full-time jobs, it may be a good idea to start a business entity. There are many configurations that you can choose, but many opt to go with a limited liability corporation (LLC). The process is easier than you may think, especially if you acquire the services of a professional formation service, which is always a smart idea since each state has its own unique laws. By having an LLC, you can keep your business affairs in order while also getting tax advantages and dealing with less paperwork.
Location and Square Footage Are Great Selling Points
The second step of your success is to implement profitable features that can make your property shine and bring in the best renters. One of them is the location of the property itself. Rental properties within communities that offer plenty of fun attractions, employment activities, and a safe environment will attract many different people. You can advertise the safe environment by researching crime statistics and making note of the close proximity of the city hospitals.
If you can afford it, finding an investment property with high square footage will be attractive to residents because they know they can do more with the space. A large property can help you as the investor because you can charge more and even have multiple residents stay there at the same time.
Curb Appeal Is Key
The outside of the home is just as important because by having positive curb appeal, you put the home in an attractive spotlight. Curb appeal means having clean exterior walls and no brick or piece of siding out of place. It also means having grass and shrubs that are trimmed regularly and if there are any unsightly or dead trees on the property, they should be removed.
To Manage or Not to Manage
Another consideration that you will need to make before you get into property investment is deciding if you will manage the property yourself or bring in a professional landlord to handle those responsibilities on your behalf.
Managing yourself is perfectly easy if you only have one property, but if you obtain more, it can become more challenging. In addition to taking rent and bringing on new tenants, you will also need to keep the property well maintained, keep track of extra costs and ensure that all customers are safe and secure. If you simply do not have the time to ensure that the space is properly managed then it is a good idea to bring on help.
In the end, purchasing a rental property is a good idea in this current climate if you can afford it. Use the tips described here and you can be a success. If you need assistance finding the perfect property, the Jessica Baker Team can help. Contact us at 724-933-1980.