Buying an investment property is a significant decision and can be a lucrative one. Still, you need to take some precautions, do your research, don’t jump right in, and read the tips ChristianBuysHouses.com has provided from worldwide professionals in the real estate industry on buying, designing, and managing your first investment property.
What To Know When Investing In Real Estate
BiggerPockets points out that owning a property, especially a rental one, can be highly lucrative — especially if you’re thinking long-term like retirement. Knowing what details need to be in place can help any property owner what must be done to create the type of financial goals they want in both the long-term and short-term.
Before starting up your investment property business, you’ll need to know the ins and outs of starting a business in Virginia. One of the first steps is deciding how to structure your operation. Many small business owners choose to form as a limited liability company (LLC) because of the protection of personal assets. Other benefits of running an LLC is decreased paperwork and the tax advantages over, for example, a corporate structure.
So, what are some critical aspects to consider when looking for a rental property and essential improvements you can make?
Before You Buy
There are several different things you should consider before you buy an investment property. The first one is the type of financing you can get and how to get approved for it. Another crucial factor in figuring out is the ability to earn rental income and how much to charge after you make the necessary updates.
You should also regard the property’s location, as homes in desirable areas are more likely to attract renters. For instance, if you’re trying to appeal to vacationers, the Hampton Roads area is known for its hundreds of historical sites and attractions, including miles of waterfront properties and beaches. If you purchase a home located near these activities, you’ll be on your way to investing in a profitable property.
Also consider if you have the time to manage your investment property, or if you need to hire someone to do it. What to consider before you invest also includes thinking about the risks and how your situation can change with time. Investment properties like rental buildings purchases, etc., are some of the best options to increase your retirement income as they can appreciate with time; besides, as Financial Samurai notes, this market is always in trend because people need a place to live, no matter the times. Still, to increase the rent price or prepare the house for sale, you may need to make a few changes.
It’s a good idea to discuss your options with a reputable real estate professional with expertise in the area, so make sure to reach out to Christian Dunlap of ChristianBuysHouses.com before beginning your search.
Get Rid of the Clutter
Start with getting rid of all the clutter, and before you even put your property on the market for sale or rent, donate or throw away all the stuff you do not need. Make sure also to reduce the clutter around the house and arrange the front and backyard to be appealing. A decluttered house is the first step in a home makeover designed to attract tenants or buyers.
Improving the place doesn’t necessarily mean that you need to invest in a complete remodel of the bathroom or the kitchen. Sometimes, making a few minor updates, such as new drawer pulls, a lamp, or other accessories paired with professional cleaning, may be enough. Some projects, like cleaning the chimney, are best left up to the pros, so use Angi.com to find a nearby contractor by searching out, for example, local chimney sweeps. As with everything else, a thorough comparison with the other homes in the area and price range will help with these updates enormously.
When considering the color of the walls, think about another essential home renting or selling tip. Remember that there can be significant ranges of taste of your potential tenants or buyers, so don’t risk deterring clients by painting the walls in bright colors. Keep in mind that any room that doesn’t get sufficient sun will benefit from a light wall color, while bright and deep colors make the space seem smaller. You don’t need to paint the rooms in a harsh, pure white, but a pleasant yellow or light beige will make the room appear brighter and larger.
Pay attention not to take over your home makeover with a decorating style to the point where the tenants or buyers cannot imagine the place decorated in their own style. Because most people find it difficult to see past the design and decor, if they do not match the potential client’s taste, it makes it hard to imagine it different, meaning they will choose another location. By incorporating this strategy, you attract tenants or buyers and can rent or sell your house for more money.
Make Sure You’re Ready
Don’t walk into an investment purchase blindly. When buying and updating a property, these tips keep you focused on the factors that help you make the best financial decision. Ensure you’re equipped for the responsibility investment properties to require, and you’ll do well.
Looking to sell your Hampton Roads property? Partner with ChristianBuysHouses.com today for your alternative solution! (757) 705-8812.