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For many investors, purchasing a property to rent out just makes sense. But finding properties that'll help you meet your long-term goals can be tricky. Whether you're considering a turnkey property or a property to rehab and rent yourself, keeping these tips in mind will help you weed out low-performers while you're hunting for a solid investment.
For experienced investors, this is probably a no-brainer. For beginners, it's a smart reminder. When you're seriously considering any property, you need a solid expectation of the expenses associated with the property:
Compare those numbers with the amount you can expect to receive in rental income each month. Ideally, you'll receive more each month than you'll be spending on the property. In some cases, a property might be worth purchasing even if you aren't going to pocket money each month. That comes down to your long-term goals and the market where you live.
Though sometimes the best markets are far from home, and we'll the last to discourage investors from looking outside their own county, it's vital to understand the area. Some examples:
If you're able to land an investment property in an area that caters to your niche, you'll already have valuable insight and an "in" when it comes to renting it out and understanding the real estate market in the area. Use your insight to give you an edge.
By purchasing a duplex, triplex, or quad you can live in, you can take advantage of an FHA mortgage--with its low down payment and interest rates--and secure a primary residence as well as a rental property (or two, or three). Although this type of investment can require more hassle, more tenant screenings, and more time in managing tenants and repairs, it can be a solid place to begin an investment portfolio.
Hi! I'm Brinda Thielman. Thank you for your interest in exploring Arizona real estate with me.
As a native Arizonian, I have seen the growth in the “Valley of the Sun” first hand. With over 30 years in the real estate industry, I know how challenging and intimidating buying and selling a home can be. That's where I come in! When I started my real estate career, I quickly found I loved every aspect of the home buying and selling process, from touring a home, researching the best mortgage loan for my clients, new construction details and even the negotiation and closing process.
In 2015, I help found McCarthy Thielman Realty, LLC. Today it is one of the leading boutique real estate firms specializing in North Phoenix real estate.
My mission is to help you accomplish your real estate goals and dreams - "I'll Lead You Home!"