Investing in a Rental Property: Tips for First-Timers

Rental Property

Photo via Pixabay

Investing in a Rental Property: Tips for First-Timers

Investing in a property is a big decision, but many Americans have gone that route in recent years, and for many reasons: not only is it a great way to diversify your portfolio, and if you decide to rent it out, it’s a way to make income throughout the year as well. If you can find a property — or if you already own one — that’s in a great location and has a lot to offer someone who is traveling or vacationing, you’re already several steps ahead of the game because location is everything. There’s a lot to consider, however; investing in a rental property takes a lot of time and hard work, especially in the beginning.

A few things to take into consideration include whether there are parks, restaurants, and attractions nearby, if the spot is popular with tourists, and how much similar homes are renting for in the area. You’ll want to do your research on the neighborhood and find out what renters are looking for, design-wise; are families attracted to the area, or is it a youthful spot full of nightlife? These details matter when you’re trying to find clients.

Here are a few things to consider.

Do the Leg Work

Investing in a property in order to rent it out takes quite a bit of work and research; you’ll need to think about the location if you don’t already own the property, as well as find out what nearby rentals are going for. Think about the fact that homes with great views that are close to spots like parks, lakes, or the ocean are the ones that can fetch quite a price, and if you decide to sell at some point down the road, you’ll have an easier time finding a buyer. Do a little homework, in the beginning, to nail down the details; you’ll thank yourself later.

Consider the Profitability Factor

When you’re renting out a property, it’s essential to make sure you consider how profitable it will be by looking at the neighborhood, the amenities you can offer tenants, and the details, such as what the weather is like year-round. If you invest in a home that you can rent out to skiers in the mountains and get a good deal, consider that you’ll have to take care of the upkeep and repairs on a home that could potentially have damage from snow, ice, and wind. If your year-round home is far away, it may be a hardship to take care of your rental. Make sure you understand the true costs before you jump in.

Create a Web Presence

Creating a web presence is essential if you want to attract customers to your rental. From giving clients a way to communicate with you to having a space to show off your rental property using photos, having an engaging website and active social media accounts will go a long way toward helping you find the right people to pair with your home. So, look for a web platform that fits your budget but still offers everything you need, and create social media pages for your property that will help you connect with potential clients.

Give Them What They Want

Renters in different areas of the country will be looking for different amenities, so it’s important to do a little homework online to find out what you should offer in your rental. From updated bathrooms to extra sleeping areas, the things renters will shell out big bucks for vary depending on which state you’re in. Think, too, about how the home’s resale value will be affected.

Investing in a rental property is a great way to earn extra income while taking steps to make a solid plan for the future, but it can be an overwhelming job if you aren’t properly prepared. Make sure you understand your legal obligations before you get started, and think about the easiest ways to stick to your budget when it comes to furnishing and designing the home. With a good plan, you’ll be on your way to booking your first guest in no time.

This post courtesy of:
Suzie Wilson ⎸  ⎸Happier Home

Investing in a Rental Property: Tips for First-Timers







Stuart FL Foreclosure Hunters Continue to Draw National Competitors

 Stuart FL Foreclosure Hunters Continue to Draw National Competitors

stuart fl foreclosures

You would think the outside competition for Stuart FL foreclosure bargains might have up and disappeared by now…but no! As The Wall Street Journal described it the other week, the shrinking number of foreclosure opportunities hasn’t driven Wall Street’s professional investors completely out of the market. But new techniques are altering their approach.

Local Stuart FL foreclosure investors have had to worry about a previous incursion by big national private equity investment firms. In the aftermath of the real estate bust, sales of distressed properties assumed an ever-larger proportion of real estate activity. National firms seized on the growing supply of cheap foreclosed homes as a ‘sure-thing’ trade for investment firms backed by money from private equity companies who wanted ‘in’ on real estate.

Wall Street knew full well that depressed real estate prices were a temporary phenomenon. They would swoop down, buy foreclosures en masse, rent them out, and wait for the bounce-back. Your Stuart FL foreclosure investors suddenly had to worry about bargain-hunting by the national firms, instead of just the usual local competitors. It took agility and cash to compete with some very deep pockets. Even where they weren’t active, their impact was felt.

But by last summer, the New York Times was headlining “Investors Who Bought Foreclosed Homes in Bulk Look to Sell.” Where, at the height of the foreclosure onslaught, a full 50% of home purchases was made up of foreclosures and short sales, by this February, the percentage had retreated to barely 11%. Companies like Waypoint Real Estate Group began quietly shopping for buyers as they took their profits and tiptoed away…

So could Stuart FL foreclosure investors breathe a sigh of relief, knowing the big boys had carted off their wheel barrows full of cash? You’d think so, but not so fast! The WSJ article describes a new phenomenon from outside. “Racing to Buy Homes Sight Unseen” was the headline. Enter the speed-based investors!

Just as trading firms had developed systems that made equity trading a competition between banks of computers trip-wired to trade at the speed of light, a milder phenomenon is emerging in foreclosure investing. According to the Journal, one example is the investment trust executive who no longer goes to public auctions to find buys. It described a recent morning in which it took him seven minutes to bid on a Georgia home “he had never seen.” He uses a quantitative data analysis program as a way to accelerate searches for the “dwindling supply of available homes that can be transformed into rental properties.” In other words, some of the big buyers are finding ways to stay in the market.

But Stuart FL foreclosure investors don’t really need to throw up their hands. Although the data analysis programs are getting better, local knowledge and on-site evaluations should continue to give sharp Stuart FL investors the kind of fine edge that national data maps and renovation cost generalizations can never quite match. It’s like the difference between a perfectly-engineered robotic customer service system…and a knowledgeable human: no contest.

Stuart FL foreclosures may be less omnipresent, but without question they continue to represent great investment potential—and not just for the national investment firms. If you’ve ever thought you would like to hear more about today’s opportunities, call me for an on-the-ground analysis!

FREE List of Foreclosed & Short Sale
Homes for Sale in Stuart: