Ashe Morgan: Your Ultimate Guide to Real Estate Investment
When it comes to purchasing a real estate property, the first thing that comes to mind is a home, and real estate investments have become a popular investment over the past years. Basic rental properties refers to properties that are purchased and rented out to tenants, wherein the owner becomes a landlord, being responsible for paying taxes, mortgage, and the property maintenance and repairs. As a landlord, it is your choice if you want to charge just enough to cover your expenses until the mortgage has been paid for the rental cost to be appealing to future tenants, or to charge more to produce a higher monthly profit. A real estate investor must be knowledgeable about the market, and if needed, will hire an expert for assistance.
For a real estate investor who is seeking for an income stream from real estate rental properties, it is a must to consider the location of the property as well as the market rental rates. It is a good idea purchasing a property from developing communities, where new infrastructures are being built while the price of the properties are still low. You don’t want to have a poor paying tenant that will leave you with a negative monthly cash flow, so it pays off being strict about requirements such as credit report to know the paying capacity of the person who is interested renting your property, and obtain a renter’s resume if possible showing relevant information about character references and previous landlords. It is a smart decision hiring a property manager if you have several rental properties to handle, so you can focus on the most important aspects of managing all of your real estate investments because doing it on your own is really daunting, stressful and time-consuming.
You can also consider being a real estate trader wherein you can purchase properties and hold them for a short period of time, usually no more than 3 to 4 months, and in turn sell them for higher profits. Flipping is being considered as a short-term cash investment wherein a flipper don’t spend any money on repairs or property improvements because the real estate investment has to have an intrinsic value to make profit without any alteration. While there are those real estate investors who prefer to buy reasonably priced or cheap properties and renovate them to add value, and sell them at a higher price.
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