If you’re already living in a home you own, have you thought about investing in additional real estate? This year is a great year to invest in a rental home or multi-family property as long as you do your research, understand your costs, and decide on the best plan for your investment cash. Here are 2018 trends to be aware of as you analyze rental investments this year.
Because housing inventory is still low in many areas, expect prices to rise faster when there are fewer available, desirable homes. With low inventory, rock-bottom bargains are history.
Have A Strategy
No matter your status—newbie investor or seasoned pro—you still need a strategy to buy properties to rent-and-hold long term or fix-and-sell quickly in today’s changing real estate market. The distressed home bargains are history, so finding a suitable investment property takes more work—which we can help you through.
When To Say When
Before you tour a single property, do your math: project your expenses, anticipate repairs and improvements and calculate your cash flow and return on sale. In 2018, investors need a tight grasp on exactly how much a property can cost. They must also be prepared to walk away. Be detailed in your assessment and stick to your property price cap with no exceptions.
Know Your Exit
When you have found a good investment property, figure out before you buy if micro-market trends indicate this will be a “keeper” that you hold or a property you fix and “turn” for a resale profit. Either way, we can provide you with local data that will help you determine which course of action might be best. The key to successful investing this year is understanding your investment parameters completely and taking conservative, deliberate steps toward reaching your real estate goals.
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