Investing in real estate can be a smart way to build wealth. It can give you consistent income, help you save for retirement or even offer a much-needed getaway spot.
Those benefits aren’t a given, though. It all depends on the property you buy, its location and many other factors.
Want to be sure you’re spending your money wisely? Here’s what to think about when buying an investment property:
- What are you going to do with the property?
Before you invest in real estate, know whether you want to fix up a house and resell it (flipping), invest in short-term or long-term rentals or have a designated vacation home. The right choice comes down to your skills, the time you have to devote to the project and your finances.
- What is the neighborhood or area like?
Property investing is all about location. You’ll want to consider an area with rising home values if you’re selling or renting, so you can get a return on your investment later.
- What shape is the property in?
The home’s condition will determine the cost of fixing it up, as well as your final sales or rental pricing. It should also play a role in what you offer for the property when you buy it.
- Are there a variety of businesses nearby?
This is important no matter what your goals are for the property. Whether reselling, renting or owning for personal use, you’ll want to think about things like grocery stores, restaurants, gas stations and more.
Get in touch for more of the data you’ll need to make a smart investment in real estate.