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. Basic rental properties refers to properties that are purchased and rented out to tenants, wherein the owner becomes a landlord, being responsible for paying taxes, mortgage, and the property maintenance and repairs. 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 equip himself with the right knowledge, skills, and attitude toward real estate transactions, whether buying or selling, and if needed, will hire an expert for assistance.
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 purchasing a property from developing communities, where new infrastructures are being built while the price of the properties are still low. When having your property rented, it pays off being strict about requirements such as credit report to know the paying capacity of the person who is interested renting your property, and obtain a renter’s resume if possible showing relevant information about previous landlords and character references. Having a rental property demands so much of your time and energy, so it is a good option 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.
If you are not into rental properties or if you think being a landlord is just too tedious for you, you may consider flipping or be a real estate trader, wherein you can buy real estate 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.