Have you been thinking about getting into real estate investing? Need a little help getting started? If so, you’re in the right place!
Below, we’re going to show you how to buy your first investment property. Put these tips into action and you’ll be a real estate investor sooner than you could ever imagine.
Get Mortgage Pre-Approval
Unless you have substantial amounts of disposable income, you’re going to have to pay for your investment property with a mortgage. To prove to sellers that you will, indeed, be able to secure a mortgage, you’ll need to get pre-approved for one.
Contact your bank and other lenders in your area, and make it clear that you’re going to be buying this property for investment purposes. They’ll tell you how much money you can reasonably take out, and you’ll be able to use that figure for clout throughout the buying process.
Wait Until Winter
Homes have a much more difficult time selling during the winter months. The cold weather tends to turn off buyers, leaving sellers with no choice but to lower their prices. This is bad news for sellers but good news for investors, particularly those who are seeking their first investment properties.
Why? Because it enables investors to buy nice properties at reduced rates. This increases those properties’ chances of investment success in the long run, as they don’t carry as much overhead.
Learn more about this concept in this article right now.
Live in the House for a While
A common practice among first-time real estate investors is to buy a home and then live in it for a while as it’s slowly transitioned into an investment property. The transitioning period could involve flipping the house until it’s updated and ready to sell, or living with a roommate until you’re ready to rent out the property fully.
In either case, you save money, as you’re tying your personal living costs in with the costs of the investment.
Buy in a Desirable Area
You might see a variety of cheap houses in run-down or undesirable areas. As a first-time investor, you might be salivating over the ROI of these properties. Note, however, that if the home is in a bad part of town, it’s going to have trouble making money for you over the long-run.
As such, first your first investment, you’re actually advised to buy in a desirable area. Desirable areas attract a steady stream of tenants, and good tenants at that, the types that pay their rent every month.
Yes, you’ll have to pay more upfront. However, as long as you do your market research, you should see substantial dividends over time.
Now That You Know How to Buy Your First Investment Property . . .
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