Most any investment will come with some risks. But knowing where those risks are can help you to prevent making mistakes and reduce, or even eliminate, losses. Take, for instance, rental real estate. The well-known saying that what matters most is “location, location, location” doesn’t just apply to those who are purchasing a personal residence.
So, as a real estate investor, it is essential to make sure that you’re focusing on the areas that offer the best potential for appreciation, and that are also desirable to your ideal tenant target market…even if it means passing up “good deals” in less enticing areas.
Likewise, buying an investment property based on price alone isn’t necessarily the road to riches in real estate. Rather, the size, layout, and overall condition of the property are what will bring in (or completely turn off) potential renters.
For instance, you may be able to acquire a home – even one in a desired location – for a “bargain” price. But, it could be a mistake if you have to pour thousands of dollars into it just to make it livable, it could put – and keep – you in the red.
Before you sign on the dotted line to purchase any property – either a condo or a single family residence – make sure that you read and understand any of the bylaws or homeowners’ association rules.
In some cases, an area may not allow for rentals – and you definitely don’t want to learn that after you’ve become the owner of the property. Similarly, you will also want to know if there are any homeowners’ association fees required, as this amount, when added to the mortgage, could end up costing you more each month than you can charge in rent.
Having an experienced, professional property management team on your side can not only free up your time to do other things, but it can also ensure that your tenant(s) can get in touch with someone 24/7 if an emergency comes up.
Want to learn more about the benefits of having a property manager? If you own rental real estate in Orlando and/or the surrounding Central Florida area, give us a call today.