If you’re considering investing in a single family property, you’re thinking in a very lucrative direction if you play your cards right. Single family properties can yield a big return for less risk than multi-family properties and commercial properties.
Here are seven steps you should take when investing in single family property:
1. Front Load The Search With Homework
Get to know the area inside and out as well as the surrounding areas. Here are a few questions that you should absolutely be asking yourself during this research phase:
- How desirable is the school district?
- How much are one, two, and three bedroom houses in the area selling for currently? How about in the last few years?
- How much more or less valuable are the houses in this area versus surrounding areas? Is there a big difference?
Those are just a few questions to start. The point of this important step in choosing a single family property to invest in is that you should know your stuff backwards and forwards before moving on to the next step.
2. Set A Budget And Stick To It
Yes, you may need to adjust how much you’re willing to invest based on what’s out there, but you should have a basic idea of how much you can comfortably part with after the homework phase in step one.
Get your numbers together first. Most real estate investments are going to require 20% down so have it ready. Be realistic with your investment, especially if it’s your first one. Be smart.
3. Get Creative With Investment Property Leads
Don’t just go off of websites and signs in yards. If you see potential in a property that isn’t advertised when you’re searching for investment opportunities, it doesn’t hurt to contact the owner. You never know.
You may also want to consider contacting a real estate agent and letting them know what you’re looking for. They may lead you in the right direction.
4. Don’t Be Scared To Put In An Offer
Be smart about what you’re offering, but don’t miss opportunities because you’re constantly second-guessing your instincts. Investing in single family property is a smart move, but it will always involve risk.
5. Put All Financing Options On The Table When Investing In Single Family Property
Look into different banks, federal, and state programs to see what’s available. You don’t want to leave any money on the table or miss out on financing options that would work well for you because you didn’t bother looking into them.
6. Be Ready To Close The Deal
Work with an attorney you trust and a lender who will work with you so you can ensure smooth sailing when purchasing your single family property. You don’t want any surprises once the down payment has been made and the paperwork has been signed.
7. Hire A Property Management Company
By recruiting a property management company to oversee your investment property, you’re ensuring that the job is being done right, especially if you’re embarking on your first rental. Trust the professionals to help you maximize the return on your investment.
Investing in single family property can be a great opportunity to make some real money if you follow each of the above steps and trust your gut instincts. Contact us when you’re looking for a property management company you can trust to make the most of your investment.