Ashe Morgan 2017: Your Ultimate Guide to Real Estate Investment
When it comes to purchasing a real estate property, the first thing that comes to mind is a home, and real estate investments have become a popular investment over the past years. Basic rental properties make up the traditional method of gaining profit, wherein a real estate investor purchase a property, have it rented, and becomes the landlord, who is solely responsible for paying the taxes, mortgage, and the property repairs and maintenance. As the landlord, you may charge more to gain higher profit, or charge just enough to cover your expenses until the mortgage has been paid for the rental cost to be appealing to future tenants, and for long-term stay. A real estate investor must know the market so it is important to equip yourself with the right knowledge, skills, and attitude toward real estate transactions, whether buying or selling, and hire a real estate expert if you need help.
If you are looking for a rental property with a good and steady stream of income, you need to consider the location of the property as well as the market rental rates, to align to your competitors, making your property more appealing to future tenants. It is a good idea buying a prospective rental property within or near developing communities where new infrastructures like schools, hospitals, and office buildings are still being built, so you can take advantage of low-priced real estate property rates, and gain higher profit once those infrastructures are completely operational with students and employees as your prospective tenants. Of course, you don’t want to end up with a bad tenant who doesn’t pay on time and damages your property, leaving you with a negative cash flow, so it pays off being strict about requirements like demanding a copy of credit report to know the paying capacity of the prospective tenant, and obtain a renter’s resume if possible showing relevant information about character references and previous landlords. It is a smart decision hiring a property manager if you have several rental properties to handle, so you can focus on the most important aspects of managing all of your real estate investments because doing it on your own is really daunting, stressful and time-consuming.
You can also consider being a real estate trader wherein you can purchase properties and hold them for a short period of time, usually no more than 3 to 4 months, and in turn sell them for higher profits. A flipper won’t spend anything for property improvements because the real estate investment has to have an intrinsic value to make profit without any alteration. There are also real estate investors who renovate reasonably priced or cheap properties to increase their value, and sell them for a higher price.