Low home prices and historically low interest rates make now an ideal time to invest in real estate. Investors have several options for earning income with real estate. Use an agent who specializes in investment property to help you get started and give you advice as you begin your search.
Are you looking to make a one-time sale that yields a one-time return? Or, do you want steady income that renters provide?
Many people who buy a home intending to renovate it themselves and sell it for a quick profit can underestimate the time, cost and their own skill level. Talking with your agent and your lender can keep a sure bet investment from becoming a money pit.
If you are ready to become a landlord, carefully consider location when making your investment purchase. Renters typically want a home in a safe neighborhood that is near amenities and with multiple bedrooms and bathrooms. Highly populated neighborhoods will be more popular with renters than rural areas.
If you don’t plan to tackle a renovation or ongoing maintenance yourself, find a trusted and competent resource for the work. You might also need to form a relationship with an attorney to handle closing or tenant issues, a property manager to handle day-to-day rental duties, and an accountant to help you navigate the tax implications of investing. The support team you build will be invaluable if you are making a long-term investment.