After evaluating your financial portfolio, you’ve realized that you’re finally ready to acquire your first investment property. But you want to make a savvy investment decision, and you’re wondering what steps you can take to ensure that you choose the right property. These tips from Savior Property Management, LLC will help walk you through the basics of the real estate investment process.
Work With the Right Agent
Real estate agents don’t just work with those who are buying residential properties! Many first-time investors don’t know that agents can help them, too. You can also work with a real estate agent who specializes in supporting investors. Getting expert guidance from your agent can help you understand your local market and figure out which properties are likely to appreciate in value.
Research Locations
In order to make a sizable profit off your investment property, you need to choose a building in the right location. You can work with your agent to determine which locations are becoming increasingly desirable for renters. Ideally, you’ll want to find an affordable property in a neighborhood that will become more popular in the coming years.
Profitable Features
As you hunt for an investment property, you’ll want to keep an eye out for features that renters in your market tend to prioritize. Canadian Apartment Magazine notes that today’s renters are especially interested in properties with energy-efficient appliances, home theaters, workout rooms, and fitness centers, and rooftop gardens.
But you don’t have to pass over a property just because it lacks certain in-demand features. Remember, you can always invest in renovations after closing! For instance, if you purchase a property with a basement, you can finish it so that tenants can utilize it as a home gym, yoga studio, or entertainment room. While you might be tempted to take this on as a DIY project, hiring a contractor will help you save time and likely guarantee a better final result.
Another upgrade you could consider is adding a fence around the perimeter of your property as tenants often prefer the privacy and safety a fence offers. Before hiring a fence installation professional, read reviews and feedback from past customers.
Financing Your Investment and Protecting It With a Home Warranty
LowerMyBills points out that if you’re purchasing a fixer-upper, you might be planning to buy your investment property in cash. But what if you can’t afford to do this? You may be able to qualify for a mortgage on your investment property, but be prepared to put at least 20 percent down if you’re not living on the property.
Going the fixer-upper route also calls for looking into purchasing a home warranty. If you want coverage in case home systems or appliances break down, then a home warranty can be beneficial. As you’re weighing the costs and benefits of a home warranty, check the home inspection report for any red flags and check if there are any existing warranties on appliances and what they cover.
If you plan on purchasing multiple properties, you may want to set yourself up as an LLC. An LLC can protect your personal assets in case there’s ever litigation brought against you. It requires a few steps to start an LLC, including appointing a registered agent, creating an operating agreement, and applying for an EIN.
Hiring a Property Manager
If you live near your property, rarely travel, and have plenty of time to attend to tenant concerns, you may not need a property manager. But if you’re often out of town, hiring a property manager can give you peace of mind. To find a reputable, trustworthy property manager, you may want to ask other real estate investors for referrals. In Houma, reach out to Savior Property Management, LLC for top-rated service.
Breaking into the investment property market can be challenging. But if you can outline a realistic strategy ahead of time, you’ll be able to choose a property that will provide significant returns for years to come. You can incorporate these tips – including working with the right agent and property manager, as well as protecting your investment with a home warranty – into your approach to make your search easier!
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From screening and marketing to inspections and maintenance, Savior Property Management, LLC is your partner in investment properties. Contact us today for more information! 985.868.3031
