Property investment and management can generate positive cash flow, but here are some things you should know first.
People do it all the time. Some people are better at it than others. The ones who are better at it are the ones who prepared themselves properly. We’re talking about property investment, and it’s a great way for long term financial security and/or positive monthly cash flow.
Here are the top tips to consider before making your first investment.
Work with a licensed real estate professional.
Working with a licensed real estate professional who has experience in investment properties will save you a lot of time and frustration in finding properties, and having someone to turn to with your questions. Best of all, it doesn’t cost you anything to hire a buyer’s agent.
Map out a “big picture” plan.
Your real estate professional can help you with this as well, but you’ll want to map out a short term and long term timeline while considering these questions:
How soon do you plan to purchase?
What is your purchasing budget?
How much time do you have to dedicate to property management?
Should you hire a professional property management company to find renters?
How long do you plan on holding onto your property (Or properties) before you sell?
Get to know the community where you plan to purchase.
Understanding the population, demographics, employment opportunities and other economic factors are very important in determining where you’d like to make your investment. This information helps you in many ways, from planning your purchase to your marketing audience.
Crunch the numbers.
If you’re investing in property for use as a rental to generate positive cash flow, you’ll want to know exactly how much your monthly expenses will be to insure you’re not operating at a loss. You’ll need to consider not only the cost of your monthly mortgage payment, but also insurance, taxes, maintenance, and marketing to name a few. This is the first important step to making sure this pursuit is right for you.
Know the rules and regulations.
As a property manager and landlord, your tenant has rights that you’ll need to understand before you enter into a lease agreement. Conversely, landlords have rights as well. Understanding these rights, rules and regulations as they pertain to your state and community will save you trouble (and a potential lawsuit) down the road.
Team Avalos are your property investment specialists!
We are here to answer any questions you may have about property investments, or buying/selling your own home. Contact Carlos and Rose for a no obligation consultation.
Team Avalos Real Estate
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355
Office: (661) 290-3743
Carlos direct: (818) 399-4093
Rose direct: (818) 590-2077