The amount of people looking to increase their number of income streams has never been higher. Among the options being sought out is real estate investing, even though it’s nothing new to the scene of recurring revenue.
With more house hunters and property management companies out there, it may seem like getting into the game isn’t an option. The Potempa Team wants to share three big tips to show you that it’s always an option and can lead to success when done correctly.
1. Market Location and Investment Timing Are Key
Each year the real estate market goes through predictable patterns with the occasional exception here and there. While the swings of high and low values can vary in range, they always come back so watching this activity provides important insights.
As the market goes into the next swing in the coming year, you’ll want to have a mortgage team standing by. Being able to time your purchase with a low interest rate and preferred pricing will save you thousands both instantly and in the long-term.
For picking a location, it’s all about the neighborhood. Try to avoid places that thrive from only one industry such as tourism or manufacturing as these markets tend to have little potential for profit. You’ll want to look for well-populated neighborhoods that amenities such as:
- Highly-rated schools
- Maintained public parks and recreation facilities
- Nearby medical providers and hospital
- Public transportation
- Accessible retail shopping and dining options
- Walkable public areas throughout
2. Remain Patient and Invest Wisely
It’s one of the oldest tenets of investing, buy low and sell high. Publicly-available data on housing prices can help you start the search for market trends and patterns. Much like purchasing a share in a company, owning a property can generate new income or be sold at a higher price to realize faster gains.
The cost of real estate also follows the same trends as the stock market. Strong and reliable companies often demand higher prices on shares as they provide investors with stable gains. A well-constructed house with high square footage requires more up front, but will have a higher return later on.
3. Learn About New Forms of Real Estate Investments
Investing in real estate doesn’t mean only buying single-family homes or multi-unit apartment buildings. Today there are more lifestyles becoming viable than ever before which means more approaches to real estate.
For starters, nearly any extra room or living space can be rented out on platforms such as Airbnb. Listings can be for a spare room, converted garage, entire home or even luxury homes for large gatherings. The possibilities for short-term rental options are near endless with travelers and modern nomads looking for unique experiences here in their own backyard.
Purchasing extra land during a new construction can yield a new income stream. Building an extra living space along with your new home keeps everything separated but still cohesive. Some have even found success purchasing land to be used as RV and tiny home parks.
The Potempa Team Is Standing by To Get You Started
When you’re ready to start exploring your options for real estate investments, contact the Potempa Team. We’ll work with you directly to discover the best home loan and mortgage solutions that fit your current financial situation and goals.