If you’re thinking about buying a rental property, there are a few questions you need to ask yourself and tips to keep in mind first.
Want to sell your home? Get a FREE home value report.
Want to buy a home? Search all homes for sale.
There are seven things to keep in mind if you’re thinking about investing in rental property:
1. Determine what type of property you will invest in. Whether it be a single-family home, a multi-unit property, a storage space, etc., it’s important to decide which property to invest in.
2. Are you going to stay local or move out from your area?
3. Are you investing for appreciation or a steady cash flow?
4. Location, location, location. Is your investment property next to a restaurant or beach? What demographic are you marketing toward for potential tenants?
5. How will you pay for the property? Are you paying all cash or are you getting financing? I believe in leverage, so my advice is to leverage as much as you can so you can buy other properties and increase your net worth and cash flow.
6. Will there be any maintenance and/or repairs? If so, will you be able to handle them?
7. What’s your exit plan? Will you trade it up for a larger property and do a 1030 exchange, or give it to your children when the time comes? Or perhaps you want to cash out when the time comes?
If you have any questions about investing in rental property or you’re thinking about buying or selling a home in our San Diego market, don’t hesitate to reach out to me. I’d be happy to help.
There are seven things to keep in mind if you’re thinking about investing in rental property:
1. Determine what type of property you will invest in. Whether it be a single-family home, a multi-unit property, a storage space, etc., it’s important to decide which property to invest in.
2. Are you going to stay local or move out from your area?
3. Are you investing for appreciation or a steady cash flow?
4. Location, location, location. Is your investment property next to a restaurant or beach? What demographic are you marketing toward for potential tenants?
Location is key when buying a rental property.
5. How will you pay for the property? Are you paying all cash or are you getting financing? I believe in leverage, so my advice is to leverage as much as you can so you can buy other properties and increase your net worth and cash flow.
6. Will there be any maintenance and/or repairs? If so, will you be able to handle them?
7. What’s your exit plan? Will you trade it up for a larger property and do a 1030 exchange, or give it to your children when the time comes? Or perhaps you want to cash out when the time comes?
If you have any questions about investing in rental property or you’re thinking about buying or selling a home in our San Diego market, don’t hesitate to reach out to me. I’d be happy to help.
No comments :
Post a Comment