Searching For Your First Investment Property
Purchasing income property or commercial buildings can be lucrative. It’s also a significant investment to consider. Those who experience real estate success recommend that those starting off new should take precautions.
It’s essential that you take your time, as well as do your research. As with any business, it’s better to have a firm understanding of what’s involved when searching for your first investment property. As a beginner, it’s important to consider the whole process before signing on the dotted line.
Are You Handy?
If you’re handy and can handle simple maintenance repairs, there’s less chance of your real estate profits being eaten away by calling other contractors. You’ll save money by repairing drywall, unclogging toilets, and performing other fixes. Once you add more properties to your portfolio, more capital will be available for hiring contractors.
Do You Have a Down Payment?
What many who are new to searching for investment properties may not know is that you’ll need a higher down payment. In comparison to the average three percent down on a traditional home loan, investment properties need at least twenty percent. The main reason is that mortgage insurance isn’t available in investment properties or commercial buildings.
When searching for investment properties, there may be some temptation regarding purchasing a flip home or bargain fixer-upper. Those purchasing their first investment property will find this is a bad move down the road. Unless you plan to do the majority of the work or find someone who can at low rates, you’ll be eating away at your profits. Your best option is to look for an investment property featuring pricing below market value that requires minimal repairs.
Consider Turn-Key Investments
Turn-key investment properties are those that already have tenants, as well as property managers. Therefore, all you have to do is take over the property. You’ll experience immediate rental income. You won’t have to worry about screening tenants or finding contractors to complete work.
If you’re looking for a comprehensive commercial real estate firm, contact Harkins Commercial Real Estate to get more information on their full range of business-oriented services.