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The Best Way to Invest in Real Estate

The Best Way to Invest in Real Estate - Real Estate News

March 15, 2015 Real Estate News
OBREC News investing in real estateInvesting in rental property is a great way to make some extra money and build up extra home equity. Knowing how to invest in rental homes is easier than it sounds. With little physical labor and some smart decision-making, anyone can be a successful real estate investor. Finding a good real estate agent will lend you an advantage in your investing goals. Local real estate agents will be able to tell you how to invest in rental homes successfully. As many as 40% of home buyers use referrals from friends and family to decide which real estate agent to hire, and 98% of home buyers who worked with a real estate agent viewed the agent as a useful source of information. One of the first things your agent will teach you is how to determine a good rental property. Multi-family homes are often a great investment due to the ratio of potential tenants to number of houses purchased. Unfortunately, multi-family homes are growing in popularity among home buyers. Due to adult children moving back home, cost savings, and aging parents requiring constant care, 13% of home buyers in 2014 purchased a multi-generational home. While you may be able to obtain a home that needs work for a low price, consider the cost of repairs before you snatch it up. A few things to consider when you are looking for a rental home are location, parking, and amenities. Location is the most important, as potential tenants will be more drawn to homes in good school districts and in neighborhoods with low rates of crime. You will also have better luck attracting tenants if you buy a house with off-street parking and other amenities like a washing machine and dryer, dishwasher, and garbage disposal. With help from a real estate agent and a good property, investing in rental homes can be simple and financially beneficial. Keeping your tenants happy is as simple as keeping the property in good condition and addressing their concerns in a timely manner. With happy tenants and a quality house, you are well on your way to investing success.