Living in the Greater Phoenix and the Glendale Homes For Sale areas you will find that the housing market has gone through some major peaks and valleys. Many potential buyers out there are looking for investment properties rather than a home that they themselves will be living in. Some investors are looking to flip a property in hopes that they will make some quick cash and perhaps reinvest in another flip. Others are looking more long term when investing in real estate. Here are some key things to consider before you venture into your first real estate investment property.
First you need to decide what kind of investment you want, are you going to rent out this home with perhaps the goal to retire and live in it yourself one day? Will it be a quick flip, how much will you need to put into renovations if that is the case. Once you have established your game plan you can then move forward with your budget in mind. You want to purchase a home that will make you the most money with minimum effort.
Location and amenities near this home are important factors to consider. Is the home close to good schools, shopping, public transportation, or easy commutes. These factors could impact whether you are able to rent the property easily or sell in the future. Another factor is the style of the home, is it a classic style home that will always be in demand or is it really out dated and one you will have to renovate completely to make it more appealing to potential buyers. Are you willing to invest time and money into doing this?
Keep in mind some hidden costs too. It is a very good idea to have the home inspected. You may not be aware of hidden structural damage that can take away from your bottom line. You will also need home insurance or landlord’s insurance if renting. You need to protect your investment at all costs. If renting you may also need to have a management company to handle your home if you don’t want to be a hand’s on landlord.
With interest rates so low and home prices more affordable than ever buying an investment property seems like everyone should be doing it, but carefully consider the risks. Perhaps speaking with a professional to determine what is best for you is the smart choice before jumping into an investment property. Remember it is not like other investments, the cash isn’t easily available should you need it in an emergency like stocks or other investments. If you are able to ride out the low housing prices and get some rental income in the meantime this may be a win win for you. Selling down the road may land you a nice piece of change in your pocket!
Contact your local Glendale Homes for Sale real estate agent and start doing your homework.