3 Tips For Smart Real Estate Investing
Investing in real estate can be very rewarding. There are also many different types of investments you can make in the real estate market. If you looking to own a rental property, fix up a home and flip it, invest in a commercial building for leasing and even living in a home while doing repairs, all these are typical ways of investing in Real Estate.
Real estate investing is not as easy as many TV shows make it out to be though. It is easy to quickly find yourself in over your head and ready to lose a large chunk of money. With these simple tips hopefully your real estate investment will go as smooth as possible.
Rentals: Buy A Property That Cash Flows
When the market was growing by leaps and bounds 10 years ago, you could have a rental that didn’t cash flow and still make money due to the value of the home rising. Today, that is too risky of behavior. Your rental should be cash flowing from day 1 or it is not a good investment.
Flippers: Don’t Choose Too Big Of A Project
Unless you are an experienced flipper or contractor, you probably don’t know everything to look for when deciding if a home is worth fixing up and how much it will cost. Many people get caught drastically underestimating the cost of repairs and end up loosing money on their flip.
Renters: Value Your Tenants
If you have a good tenant that pays on time and takes care of the home, make sure to take care of them. Many people will be happy to share their rental horror stories of renters not paying, not leaving and trashing the home. So if you have a great tenant, treat them like one.