Property Investing the Smart Way
Property has long been known to be one of the smartest investments anyone can make. Buying a home or plot of land will almost always increase in value, sometimes very quickly, and other times the growth builds slowly, but it’s rare indeed to lose money on property.
Purchasing an investment property is a great way for you to have a passive income and build wealth. But there are some considerations you need to take into account to be sure you’re making the best investment for you.
What Is Your Goal?
You should first decide what you expect from your property and how much involvement you’ll have with its day-to-day management.
Do you want regular rental monthly income by having long-term or vacation rentals? Do you want to flip the property by repairing and updating the home for resale? Do you want to own property in order to build on it later?
If you’re interested in having regular rental income by having tenets in your property, then look for properties with strong rental demands and low turnover. You should also look at the job market, too. Are there big employers within close commuting distance of the property, or are there a lot of closed and shuttered businesses? And, of course, look at the market values of other homes in the area. A qualified real estate agent should have that information for you, but if not, there are online sites where you can search home prices in the area.
It’s possible to purchase a home as is, which means the seller will sell the home without making any necessary repairs. If you’re willing to invest some time and money, you can get a good deal that way, but you’ll still want to get a professional appraisal to make sure there is no significant structural damage.
Naturally, location is a prime consideration when purchasing any property, but that is especially true with vacation rentals. It should be in a place that’s popular with vacationers, like a beach or ski resort, near national and state parks, amusement parks, or sporting stadiums.
Climate is also a strong factor to consider. Then you want there to be easy access to transportation, like airports, train stations, and highways.
If you’re looking at vacant property with an eye for development in the future, you’ll want to take many of the same factors into consideration that you would with a long-term rental. This means factors like home values in the area, the job market, and a growing population.
Check to be sure there is access to utilities like power, water, gas, and internet. And check zoning laws to be sure the type of construction you want to do, single-family, multi-family, or commercial property will be allowed.
Physically inspect the land and look for any environmental issues. And be aware of wildlife in the area and have them humanely removed when called for. For instance, if your property is in the North Central Texas area and you have rodent infestation or bird and wildlife incursion, call Wildlife X Team for trapping and removal in a humane way. And as professionals, they’ll be able to offer you advice on how to prevent future problems.
Managing rental properties can be time-consuming, especially if you have more than one rental property, work a full-time job, or have to commute a long distance to get to it. A property management company can handle the day-to-day details like repairs, collecting rent payments, screening prospective tenants, and making sure all local legal requirements are fulfilled.
Do your research to make sure the property management company you choose has a good reputation in your area by talking to real estate agents or looking for online reviews and ratings.
When Your Property Investment is a Business
Like any business, you want to be profitable and stay legal. Keep track of any money you spend on your property for later appraisals if you want to either sell or refinance. Take before and after photos and keep receipts, especially if you’re flipping the property.
Protect your personal assets by structuring your business as an LLC. An LLC separates your personal assets from your business ones insulating your personal finances from any losses or litigation from your business. Forming an LLC is something you can do yourself, saving attorney fees. In Texas, you can simply follow the steps laid out for how to form an LLC in Texas.
Purchasing property is a smart investment as long as you go into it knowing all the facts, like where to buy, what kind of property suits your goals best, and how to properly run your business.
If you have raccoons, opossums, squirrels, rodents, birds, snakes, bats, beavers, skunks, and insects, the Wildlife X Team in Fort Worth, Texas, will remove these animals and keep them out! Contact them and let them help you keep your property pest free.