5 Stellar TIPS for Purchasing an Investment Property
from Jennifer Fox, Property Management/Investment Expert
1) Understand the Financials
Determine how you will fund your purchase (conventional loan, cash deal, IRA-funded, etc.).
Understand remodel or ongoing maintenance costs.
Determine financial line items important to your financial analysis (IE: market rent, appreciation projection, RE taxes, utilities, maintenance, etc.).
2) Research the Rental Market
Understand the current market conditions of both rentals and sales.
Research rental rates and trends in the area(s) of investment consideration.
Consider areas for investment outside your personal experience and location.
3) Evaluate Investment Options
Review the pros and cons of purchasing a condo/townhome versus a single-family home.
Review different areas for their rental potential, infrastructure growth, commuting options, schools and property taxes.
Consider cash flow, appreciation, tax ramifications, future objectives for the property, strategic property location and purpose (i.e., housing for your college student).
4) Move in Ready or Not?
Determine your interest in buying a “turn-key” property versus a “fixer upper."
5) Consider Hiring a Property Management Company
Hire a professional property management company to support your investment and to provide advice, research, property preparation, marketing, vetting, lease execution, 24/7 emergency service, tenant relations and more.
For more information, strategy or further exploration into your options, contact Jennifer Fox, associate broker, 303-442-2448 or email@example.com.