Basics of Investing in Real Estate Rental Properties
Rental Property Investing Basics
Is the stock market scaring you? It scares us! Many investment advisers are now asking their clients to consider pulling some investment money out of stocks and putting those funds to work in real estate. A survey by Pulsenomics of 100 industry experts reports the outlook for real estate values is steady and upward.
If you would like to know more about investing in real estate, why that move makes sense, and the special opportunity now available in Chapel Hill, Cary, and Durham … we invite you to explore our series of short videos below.
We also offer a series of in-depth seminars for REALTORS™ and investors. Sign up today!
Knowing When To Invest in Property Management in Raleigh
Real estate has always been a cyclical industry … values have gone up and down but always in an upward direction overall. Even looking at the four-year down cycle of 2008 to 2012, real estate has fared better than other types of investments. This video explains exactly where we are today in the real estate cycle and why that should matter to any investor.
Tips & Tricks for Property Investments in Durham
Talking to a doctor, engineer, accountant or attorney can be intimidating because each one uses “buzzwords” or jargon that can cause confusion. Once one understands the buzzwords, the concepts are not all that complicated. The same is true when it comes to investing and real estate. This short video covers many of the “buzzwords,” key phrases, and concepts having to do with real estate investment.
Property is still widely considered one of the best long-term investments for building a residual income, especially after retirement. Here are some important things to consider when planning your property investment strategy:
- Know your budget. It’s critical to understand your cash flow before pouring money into property investment. You can ask your bank for pre-approval of your investment loan so you’ll know exactly how much you’ll be working with.
- Understand the ongoing costs. There are several ongoing expenses that come with investment properties — make sure you factor things such as rates, insurance, and general repairs into your annual budget.
- Invest in a growing area. Consider purchasing your property in an area with a high or growing demand for rental accommodations. Think about proximity to public transportation, universities, and schools to make your property more attractive to potential renters.
- Handle minor repairs on your own. It can get expensive to have tradesmen complete all of your property’s minor repairs. If possible, consider saving money by handling these repairs yourself.
- Make smart purchases. Remember, your rental property needs to be functional above all else. Don’t get sucked into buying a property simply because it is stylish rather than practical.
- Get a building inspection. Take the time to get your building inspected by a professional. This could save you a lot of money down the line on expensive repairs.
- Think carefully about personal debt. It isn’t necessary to have your own home paid off before investing in property, just make sure your own level of personal debt will still be manageable once you’ve taken on another property.
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Things To Consider Before Property Investment in the Triangle Area
While property investment can provide a great source of income for the future, it isn’t a decision that should be made without doing your due diligence. Many first-time investors jump into property investment without researching their options. The professional investment team at Block & Associates is here to provide you with comprehensive information regarding investment opportunities that will allow for long-term financial benefits.
Here are some other common mistakes first-time property investors make:
- Jump right in without proper research
- Make emotion-based decisions
- Neglect to consider future changes in the market
- Take on too much risk
- Select the wrong location for their property
- Using rental income to pay for rental issues
- Don’t consider all the possible tax deductions
- Neglect to consider long-term strategies
At Block & Associates Realty, we’ve seen many property investments go south because the owners didn’t consider all of the necessary risks prior to getting started. We can help you avoid these common pitfalls by offering you comprehensive research and guidance throughout the entire process of property investment, ensuring that you get the most out of your experience.
There are many types of investments a person might select for their money … many “classes of assets.” Different types of investments have different types of returns and tax implications. Watch this short video to find out what makes real estate a unique class of investment … and why real estate is such a strong balance sheet builder.
People often ask about “The Tax Shelter Feature” of real estate investing. Depreciation is a deduction against income, even though no payment has been made by the property owner, thus allowing the owner of investment real estate to take a deduction without having the income.
A set of circumstances exists right now in The Triangle region of North Carolina that has created a unique opportunity to make money owning rental homes as investments. To understand the opportunity in front of us today, check out this video.
How To Invest in Property Management Services in Raleigh
There actually is a methodology to how one can best create a portfolio of investment rental homes. This short video takes you through the different stages of acquisition, debt reduction, and cash flow. Watch and learn how to apply what you have learned in the previous videos.
For over 20 years, Block & Associates Realty has been building the premier rental and property management firm here in the Triangle. With approximately 2,200 homes under lease and over 1,000 managed in-house, Block & Associates Realty is the largest and most professional rental firm in the market. Here, we show the many ways Block & Associates Realty can assist you.