You have your home, you have a great job, and now you’re looking to make some big moves. Real estate can be the best way to diversify your financial portfolio or even take your hand at being a landlord. It never hurts to have another stream of revenue, but you want to make sure you know what you’re in for when it comes to buying an investment property.
If you are considering purchasing an investment property, and you don’t know where to start, lean on BSR Realty Group to help. Here are five tips for buying an investment property:
1. Evaluate your finances
First things first – can you even afford an investment property at this time? There’s no shame if the answer is no; it’s actually better to admit that now is not a good time financially, than going through with the purchase and getting yourself into a pickle. Take a look at your finances, discuss the pros and cons with your partner, talk to your financial advisor, and even lean on the shoulder of someone who is already doing it. Think long and hard, then make the decision if this risk is worth taking. Because at the end of the day, buying an investment property is a risk, but it’s a risk that could certainly pay off in the long run.
2. Pay attention to the market
The real estate market is ever-changing. Just like any new job or hobby, you’ll need to invest some time into learning about the state of affairs. Lean on your real estate friends for advice, take a few courses, or even just stay up to date on market trends. Immerse yourself in what is happening in the market, so you don’t strike at the wrong time.
3. Decide your end game
Think about what you want out of an investment property. Is it more revenue? Maybe more time spent doing what you love while making an income? Are you thinking about leaving your job and jumping into real estate full time? Whatever your “Why” may be, decide your end game. Are you in this for only a few years, or is this a lifelong mission? Get real with yourself and be honest about your reasoning for purchasing an investment property. It will help you stick to your goals in the long run if and when times get challenging.
4. Find the right location
Now that you have officially made the decision to take a leap of faith, start thinking about where you want to be. Should you purchase a condo on the beach and rent it out to snowbirds? Should you fix up a house with tons of potential off the beaten path? Think long and hard about what your rental or buyer target is more likely to be interested in and go from there. Don’t jump at the first option that you see; take some time to truly weigh the pros and cons of each listing and decide what is right for you and your goals.
5. Know you’re in for a ride
Becoming an investment property owner can certainly pay off in the long run – however, just know you’re in for a ride. Much like regular homeownership, anything can happen. If you’re up and willing for the challenge, we’re here to support you. And, if it ends up not being right for you, that’s okay! This is a huge decision and a big jump, but is living life safe ever truly worth it? Buying an investment property is exciting and could potentially be a fruitful financial move. So, if you’re interested in buying an investment property, you’ve got a team behind your back at BSR Realty Group. Learn more today on how you can get started!
Are you ready to get started on purchasing your own investment property? Contact BSR Realty Group today!
