In the current financial landscape, investing has stretched beyond stocks, mutual funds, and other traditional assets. Many other avenues have become part of portfolio inclusions that can be highly rewarding in the long run. Real estate investments is one of them, but one that demands planning, research, and dedication. If you’re looking to get started with real estate investing, you might be wondering how to buy a new investment property. This is exactly what we’ll cover in this guide.
Decide Whether You Can Really Be a Landlord
While being a landlord can prove lucrative, it comes with a whole new set of obligations. After choosing your investment property, you need to prepare the units, find dependable tenants, and handle maintenance headaches and hassles of course. You’ll need to stay on top of repair needs such as plumbing leaks, clogged toilets, electric failures, etc. and put together a solid team of contractors, cleaners, and handymen to quickly address them. Knowing these aspects can help you move forward with real estate investing. For instance, if you lack time for these obligations, you can consider investment options like REITs.
Can You Afford the Down Payment?
Not only investment properties involve a higher down payment than owner-occupied properties, but they also have more stringent approval requirements.
Select the Type of Property You Want to Invest In
If you choose to buy rentals, decide whether you’re interested in residential or commercial properties. The residential option can be as simple as buying an apartment, condo, or home and renting it out as an Airbnb.
If you have commercial real estate in mind, the investment decision can be as simple as purchasing a single commercial space or as large as a strip mall. You may even consider building a large multi-family residential real estate or apartment complex.
If you’re looking for a quicker return, you may avoid renters altogether and buy properties to flip. This simply involves buying a property, making improvements to it, and selling it for a profit.
Choose Your Location
Don’t forget to take location into account when considering new property investment. Look for a city or locality where that’s picking up steam. This means it should be subject to rapid population growth and to accommodate this, revitalization plans are underway. On top of that, the property you invest in should be surrounded by numerous amenities, including parks, restaurants, trails, coffee shops, shopping centers, schools, colleges, etc.
Real Estate Investments In NY, FL, DE, and NJ
Investors should take their time to perform due diligence before buying a new investment property. When exploring available options, they should base their decision on the potential ROIs of each, as well as the factors discussed above.
Milbrook Properties has been acquiring high-income producing properties for decades in the New York, Delaware, New Jersey, and Florida areas. Contact their team today if you’re looking to buy or sell your multi-family or commercial property.