The Do's and Don'ts for Investing in Real Estate

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Real Estate

Is 2021 the year you want to invest in real estate? It may just be the perfect year for you to purchase a rental property, a vacation home, or to flip houses. I would be happy to help you find the perfect investment property, and I’ve put together this list of tips to help you get the best return on your investment.

First, consider what type of investment property is best for you and your family. 

If you are thinking about a rental property, such as a vacation condo or rental home, consider how much time will be needed for things like maintenance, managing a website or rental listings, and vetting potential tenants. For rental homes, make sure the areas you are searching are attractive to tenants in terms of proximity to nearby business centers and transportation hubs, and in good school districts for family tenants.

Is a family vacation property more to your liking? Make sure you read any and all rules pertaining to owners and guests, as well as rules on renting your property out when you are not using it, if that is something you plan to do. Also be sure that your vacation property is somewhere you foresee your family wanting to travel to often enough to make it worthwhile.

For new house flippers, you want to find out what return you can expect to get in your market area and talk to contractors and suppliers to get realistic estimates on renovations, both in terms of price and time to completion. 

Do's & Don'ts:

Do aim for at least a 15% return on investment.

Do look for homes priced in the low end of the median price range.

Do look for 3-bedroom, 2-bath single family homes for rentals or flipping.

Do focus on one neighborhood or area.

Do purchase rental properties close to your home if you plan to manage them yourself.

Do use one real estate agent to help with all your buying and selling needs. 

Don’t purchase a second property until the first is earning revenue.

Don’t buy properties that you wouldn’t want to manage, even if you plan to use a property manager.

Don’t buy a home that you cannot afford to carry for several months in case of a slow market.

Don’t buy a home or condo without having inspections performed.

Don’t buy without title insurance.

Don’t buy more properties than you are able to manage.

As I mentioned, I can help you search for investment properties. Working with the right Realtor really makes a difference to your bottom line! Did I mention that hiring me as your buyers agent is at no cost to you?! Contact me today at 714.725.1897 to discuss your future investment!