Three TipsWhen Buying ARental Property
by Marco Santarelli, Norada Real Estate Investments
As you may already know, “Loca- tion, Location, Location” still rules and remains the most important factor for profitability in any form of real estate investing wheth - er your strategy is “fix and flip” or “buy and hold”. Before you decide on a specific property, consider your property’s market and most importantly its area, neighborhood, and street loca - tion seriously. When choosing a real estate market, it’s always best to select one that best aligns with your investment goals. For example, an investor who only wishes to go in it for the cash flow (and not appreciation) should probably opt for a more stable market. Timing a rental property market is also important. When it comes to buying rental properties, location is important but so is timing to a certain extent. The general rule is – Buy in a Buyer’s Market. Sell or trade-up in a Seller’s Market. You should try not to buy near the top
ne of the biggest advantages of buying a rental property
of a local housing market cycle. For some, this may be difficult to do so seek professional help. As important as location is to buying, so is “leverage, lever - age, leverage”. With mortgage financing widely available and interest rates near historic lows, you have a golden opportunity to build a great real estate portfolio. Leverage magnifies your returns and allows you to do more with the capital you have. A turnkey rental property is a great option for investors searching for passive income that requires as little active management as possible while still achieving modest returns on investment. Like many things in life, buying rental properties once you know the rules of the game is not as difficult as you might imagine. The “secret” is to work with the right people from start to finish who can help you suc - ceed by minimizing risk and maxi - mizing profitability. •
is that it is a passive investment requiring little day-to-day man- agement from its owner. Anoth- er advantage is that you start earning a return on your invest - ment immediately in the form of rents. However, the investment requires due diligence on your part to ensure you get the best return on your investment. Just like any business, pur - chasing a rental property to gen - erate monthly income and grow in value can be a little risky if you don’t know what you’re doing. Choosing the right property, maintaining it, and dealing with tenants takes work. So your new rental property should be rent- ready and turnkey. It’s important that you exercise caution before buying anything. Here are some important tips that you should follow when buy- ing a rental property for passive income.
thinkrealty . com | 69
Made with FlippingBook Online newsletter