It’s no secret that becoming a homeowner is one of the biggest dreams many of us have at some point in our lives. As the 2022 market looks to cool down, it’s the ideal time to look for great savings on both home price and interest rates for an investment property.
There are two ways to make money from investing in a property. The first is true for any owned property and that’s appreciation in value. As the property goes up in price, the return on investment becomes greater. The second is rental income which generates new cash flow. Let’s break those down more.
Understanding Appreciated Value
Even outside of the real estate market ups and downs the pandemic brought, property has always ended up appreciating in value over a long enough period of time. Many homeowners saw fantastic increases in price in 2021 and capitalized on the opportunity.
To take full advantage of appreciating property, it’s important to work with local real estate agents that understand the micro markets of each neighborhood. The David Curri team is able to work with your investment and income goals when determining which property is the best choice.
Rental Income Gives Faster Returns
Especially as more working professionals are choosing to travel and rent, investing in a rental property can provide more immediate returns. When done correctly, you can secure renters and begin seeing new income with little effort. Working with local companies for maintenance and repairs keeps the cost even lower.
If you’re handy with your tools then you can choose to invest some of your time instead of money into taking care of the property. Drawing up a lease that protects both you and the tenant may require an attorney to make sure every base is covered.
Investing in and operating a rental property does take some up front leg work. Once you learn how to manage it in a way that works best for you, you’ll soon be looking for the next investment opportunity. Whether you’re looking for your first rental or your fifth, our local knowledge can be just the insights you need to make the most optimal decision.
Tips When Starting To Invest in Real Estate
The first set of tips is all about staying local and keeping processes as simple as possible. Just like using local repair companies for maintenance, you’ll want to be in the area to work directly with anyone involved with your investment. Keeping tabs on your property personally rather than through a management company is always preferred.
Lastly, you’ll want to start talking with a real estate agent as soon as you begin considering an investment property. Being able to tap into local market knowledge from day one will steer you towards the prime locations. From there, you can decide on specifics and start scouring listings in the exact neighborhood you want.
Don’t let the opportunity to explore other income sources coast by this year. Work towards financial independence with your dream investment property. Reach out to our expert real estate team at David Curri. Our success and experience in local real estate raises the bar for how easy purchasing an investment property can be.