If you have been thinking about investing in rental real estate, the low home prices, combined with low interest rates makes this an appealing time to buy. While it may appear to be simple to just buy and rent properties, it is important for the new investor to think about a few things. First, know your options and where you are intending to go. You can buy and hold, which is a longer term strategy --taking advantage of rental income paying for the property while it increases in value and you benefit from being the landlord/owner. You can buy and lease/option a property, which may be a mid term to longer range strategy depending upon whether the option to purchase is exercised. Finally, you can find a house to purchase and flip, which is typically viewed as a short range strategy.
Simple, right? The right purchase at the right time, in the right location, in a condition consistent with your selected option, at the right price requires some knowledge and experience. First-time residential investors are encouraged to pair up with a real estate broker with knowledge and experience in this form of investing. Speaking from my developed experience, both as a broker involved in finding the right deal, as well as an owner of multi-unit rentals --this is a critical decision point, and can make the difference between success and failure.
Here are some of the key points in making a decision to invest in rental real estate. Look for the right location, knowing that you'll be competing with others in the deal. Have your funding and financial planning lined up --this means consulting with lenders, investors, financial planners, and your accountant. Rental real estate has to be approached as a business, with a plan in place before you sign on the "buyer's signature" line. Plan for those individuals that you need to be successful...individuals who can assist with maintenance ranging from the simple (clean-ups and minor repairs) to the complex (plumbing & electrical). You may also want to have a tax & real estate attorney on your selected team or even consider using a property management company to rent and maintain your investment.
While all investment types have their risks and benefits, real estate can be a nice addition to balanced strategy in investing. When you are ready to start investing in the Pacific Northwest from Tacoma to Olympia, please give me call.
Author:Vicki McLellan Phone: 425-301-2595 Dated: September 4th 2011 Views: 3,919 About Vicki: I'm a full-time licensed professional and love what I do. I use that enthusiasm to make the process ...
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