Making A Smart Real Estate Investment
Of course everyone wants to make a smart investment when it comes to real estate. Whether buying a home for yourself to live in, one as a rental or even looking to flip a home for a profit, it is the a no brainer. But yet so many people end up making poor investments in real estate. Flips end up loosing money, rentals don’t cash flow and owner occupieds end up under water.
These issues are usually due to inexperience. Most people only buy a couple of homes in their lifetime at most. That is why the help of a Realtor who has experience in real estate investing is invaluable. But to get you off on the right foot, here are a few tips for your real estate investment.
Purchase A Home That Doesn’t Require Too Much Work
One of the biggest mistakes first time investors make is underestimating how much repairs to the home will cost them. It is incredibly important to bring in an experienced contractor to give you estimates for everything in the home before you purchase it. Also make sure to get an inspection, having unexpected issues pop up will turn your home into a money pit in no time.
Make Sure Your Property Is A Good Investment
If you are renting out your property and it is not cash flowing, then there are probably better investments out there for you. The market isn’t rising like it was 10 years ago. Make sure your rental cash flows from day one or think about skipping on having a rental property.
Secure Long Term Financing
If your planning on having a rental, don’t plan on refinancing a few years down the road. This will kill any of your profits really quickly. Refinancing is expensive and should be avoided if possible. If you can land good 30 year financing off the bat, then do it and have on less thing to worry about.