Are you trying to decide if you would like to try investing in real estate? U.S. News gives some tips so you can get a better idea of what it will take and how best to do it. Once you have a better idea of what it is like to invest in real estate, it is much easier to decide whether you want to go for it or not.
#1 “Assess Your Goals”
Know what you want out of the investment. Also, know what kind of work you will need to put into the place and whether you have the time and money to do what it takes. It is always smart to do all the research necessary.
#2 “Know the Neighborhood”
It is all about location so make sure you are familiar with zoning laws, local schools, close by beaches, and the appreciation of real estate in the area might be later on down the line.
#3 “Buy Local”
You are already familiar with your own neighborhood so why not buy local. It will be much easier to take care of your investment if you are close by and much less expensive as well because you won’t need to hire a property manager.
#4 “Best Bet: A One Bedroom Condo”
Other than vacation properties, the hottest rental properties on the market are usually one bedrooms for singles such as young singles and retired widows. It is usually the best value for you and it’s also the easiest type of property to manage.
#5 “Buy at a Good Price”
Try to buy under 10 or 11 times what the annual rent will be.
#6 “Make Sure You Have Some Reserve Cash”
Like with any property, you will inevitably face unexpected expenses with your investment. Things can break or can go wrong so it always good to have a reserve of funds to cover any of those expenses.
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