Ashe Morgan: Your Ultimate Guide to Real Estate Investment
When it comes to purchasing a real estate property, the first thing that comes to mind is a home. Basic rental properties pertains to properties that are bought and then rented out to tenants, and the owner becomes the landlord who is solely responsible for paying the taxes, mortgage, and the property maintenance and repairs. As a landlord, it is your choice if you want to charge just enough to cover your expenses until the mortgage has been paid for the rental cost to be appealing to future tenants, or to charge more to produce a higher monthly profit. A real estate investor must know the market so it is important to equip yourself with the right knowledge, skills, and attitude toward real estate transactions, whether buying or selling, and hire a real estate expert if you need help.
For a real estate investor who is seeking for an income stream from real estate rental properties, it is a must to consider the location of the property as well as the market rental rates. It is best to buy a rental property in developing communities where new infrastructures like schools and office buildings are still being built, so you can take advantage of low-priced real estate property rates, and gain higher profit once those infrastructures are completely operational. When having your property rented, it pays off being strict about requirements such as credit report to know the paying capacity of the person who is interested renting your property, and obtain a renter’s resume if possible showing relevant information about previous landlords and character references. Having a rental property demands so much of your time and energy, so it is a good option hiring a property manager if you have several rental properties to handle so you can focus on the most important aspects of managing all of your real estate investments.
You can also consider being a real estate trader wherein you can purchase properties and hold them for a short period of time, usually no more than 3 to 4 months, and in turn sell them for higher profits. Flipping is considered a short-term cash investment wherein a flipper won’t spend anything for property improvements because the real estate investment has to have an intrinsic value to make profit without any alteration. There are also real estate investors who choose to purchase reasonably priced or cheap properties, have them repaired or renovated, and sell them at a higher price.