Becoming a real estate investor is one of the best and most reliable ways to increase your income. Successful real estate investors know how to find the right properties and attract great tenants.
But still, if you want to get into real estate, you need to learn some of the best real estate investing tips and tricks. That way, you’ll have the ability to skip over some of the mistakes newcomers make. Instead, you can focus on finding great properties and getting your real estate career started.
Below, we’ll get into our top 3 real estate investing tips. Keep reading to learn more and get started on the right path!
1. Research Different Markets
One of the best real estate investing tips is to research different markets. Ideally, you’ll want to buy a property that hasn’t gotten too expensive. Yet, if it isn’t in an area with a lot of demand, you might struggle to get tenants.
So, you should figure out how much you can afford to spend on each property. Then, decide which area you want your properties to be located in. Don’t limit yourself to the areas around you, either. Instead, look into housing markets around the country.
Here are some of the best housing markets in 2022:
- Austin, Texas – This area has a big city feel that attracts many young families. Companies like Oracle, Tesla, and Google all have a significant presence in Austin, drawing tech workers into the city. The median home sells for $571,481 in Austin and spends around 11 days on the market.
- Tampa Bay, Florida – Tampa Bay is one of the most competitive markets in the nation right now, driven by growth in job opportunities. The median sell price for homes is $364,808.
- San Antonio, Texas – San Antonio homes sell for a median price of $286,444. The city has seen significant growth over the past decade, and it features lots of Mexican and southwestern cultural elements.
Consider Buying Older Properties
If you want to spend less on your properties, you should think about buying older properties and updating them.
Then, you can rent them out for a profit. To do this, you’ll need to know about the most up-to-date appliances and styles. In addition, consider which styles are likely to stay in style so you don’t have to update the property again for several more years.
2. Screen Your Tenants
Once your property is on the market, you’re likely to start hearing from potential tenants soon.
As a property manager, you might experience the temptation to accept the first tenants you come across. After all, the shorter the amount of time the property spends on the market, the sooner you’ll get paid.
Yet, you shouldn’t accept tenants without screening them first. In your screening, you might want to consider running a background check on the adults who will live at the property. That way, you can see if they have any past history of criminal charges against them.
In addition, you’ll also want to know if they’ve ever been evicted from a property before. If so, you should ask them why they were evicted.
You’ll also want to make sure they can afford to pay for the property. To do this, ask for proof of income or employment. Many real estate investors also run credit checks on potential tenants.
Keep in mind that it’s illegal to discriminate against tenants on the basis of race, sex, familial status, national origin, or disability status.
3. Hire a Property Management Company
Once you have your property, you might want to consider hiring a property management company. Doing this is especially important if you have more than one property or are handling several tenants at a time.
Keeping up several properties can get busy. After all, once you have clients, they’ll be contacting you with various questions and issues. You’ll also need someone to keep track of your accounting and make certain everything gets paid on time.
That’s where a good property management company comes in. When you work with a property management company, they’ll provide a team of workers who can handle tenant requests. The company hires accountants who work on your behalf, helping you keep track of your finances.
They’ll also give potential tenants tours of the property and answer their questions.
Finally, their maintenance team will handle basic maintenance issues. It’s important to have a high-quality maintenance team on hand when you get maintenance requests. The longer you wait to address these problems, the larger they might get. So, you can avoid spending money on repairs by having maintenance teams look at the problem right away.
Property management companies also improve your relationship with your tenants. The right team will leave a positive impression on the tenants and make their stay more enjoyable. They’ll also increase the chance that the tenants will renew their leases.
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Go Beyond Real Estate Investing Tips
When you implement these real estate investing tips, you’ll find it easier to find the right properties and keep your tenants happy.
As such, your real estate ventures will take off in a quicker fashion and make you more money. As you’re starting out, you should also listen to the advice of seasoned professionals and others who have gone before you. Seek out the mentorship of a real estate investor who owns properties like the ones you want to run.
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