If yes, welcome aboard! It has become a known fact that real estate investing is a great way to make money and generate a positive cash flow. However, the line that separates you from becoming a successful real estate investor from an unsuccessful one is your ability to buy your first investment property correctly. Buying that first investment property will be the most vital decision you will ever have to make and it can determine whether you will climb mountains in real estate investing or sink deep into an ocean. I certainly don’t want anyone sinking! Here are a few of my do's and don'ts when it comes to investing!
You can deduct interest, taxes, insurance, and other expenses against the property's income and usually deduct losses against your other income. You can also deduct depreciation from your taxes.
Your rental property is a business that requires time and energy. You'll need to keep up-to-date on rental laws and are legally required to maintain a safe and habitable property for your tenants.
Purchasing a property in an area where the rental market is already thriving will increase your chances of high profitability on your investment. Look for neighborhoods that cater to specific renter demographics—college or university students, young professionals, seasonal workforces, and those with travel-heavy occupations are consistently in the market for rental options.
You can change or upgrade almost anything about a rental property, but the one thing you can’t change is its location. Even if you find the perfect house to invest in—it’s below the market price, has minimal issues, and boasts an ideal layout—you could still be left struggling to fill the property with tenants if it’s in an undesirable location. Consider the rental demographic you’ll be going after and what they’ll be seeking.
Interested in investing? Call me today (315) 405-6744