Real estate offers an excellent opportunity for people who are looking for a good Return on Investment. Putting money into a rental property or flipping a home can generate the cash that you need to improve your lifestyle and support your family. If you are preparing to buy an investment property, then it is essential that you follow these proven steps:
Step #1: Know the Numbers
Not only do you need to have the down payment ready, but it is also a good idea to have a realistic picture of the amount that will be needed for other closing costs and start-up expenses. For example, you might not be able to get mortgage insurance, which means that you need at least 20% down for the purchase.
Step #2: Have a Clear Goal
Don’t buy a property unless you know what you are going to do with it. When you are looking for investment options, start with a clear goal regarding how you will profit from the transaction. Your efforts will vary depending on your decision to rent or flip the property. Flipping can turn a faster profit, but you will need more cash upfront. On the other hand, renting creates a long-term, passive income, but you will need to commit to maintenance and tenant management.
Step #3: Know the Market
The best way to understand the current real estate trends is to hire the right agent to support the transaction. Understanding the economy is essential so that you know a reasonable asking price for rent. Pay attention to employment trends, neighborhoods, and future growth. Your Atlanta real estate agent can help you compare the options so that you can get a feel for future possibilities.
Step #4: Be Ready for Renovations
If you are buying an older home, in most cases you will need to spend time on renovations. Keep in mind that you might need a little more up-front cash for investment properties compared to buying a newer home. House flipping requires a lot of cash to complete the renovations and prepare the home to be listed on the real estate market again. Rentals might not require as much up-front cash, but you need to be prepared in case there are any unexpected repairs that arise after you take ownership of the property. Just because renovations are needed, doesn’t mean that you should put on your work clothes. Instead, consider the benefits of hiring a handyman or contractor to handle the details.
Are you preparing to buy an investment property? Then, right now is a great opportunity to talk to our team here at DUFFY Realty. We are familiar with the Atlanta real estate market, and we will help you find the properties with the best potential. Call today to learn more about our flat-fee commissions that will help you save thousands of dollars on the transaction: (678) 318-1700