Ashe Morgan: Your Ultimate Guide to Real Estate Investment
When it comes to purchasing a real estate property, the first thing that comes to mind is a home. Basic rental properties pertains to properties that are bought and then rented out to tenants, and the owner becomes the landlord who is solely responsible for paying the taxes, mortgage, and the property maintenance and repairs. As a landlord, it is your choice if you want to charge just enough to cover your expenses until the mortgage has been paid for the rental cost to be appealing to future tenants, or to charge more to produce a higher monthly profit. A real estate investor must equip himself with the right knowledge, skills, and attitude toward real estate transactions, whether buying or selling, and if needed, will hire an expert for assistance.
For a real estate investor who is seeking for an income stream from real estate rental properties, it is a must to consider the location of the property as well as the market rental rates. It is a good idea purchasing a property from developing communities, where new infrastructures are being built while the price of the properties are still low. When having your property rented, it pays off being strict about requirements such as credit report to know the paying capacity of the person who is interested renting your property, and obtain a renter’s resume if possible showing relevant information about previous landlords and character references. Having a rental property demands so much of your time and energy, so it is a good option hiring a property manager if you have several rental properties to handle so you can focus on the most important aspects of managing all of your real estate investments.
If you think you will not be a good landlord or you are not into rental properties, you can choose to be a real estate trader, and engage with flipping wherein you purchase properties and hold them for a short period of time, usually no more than 3 to 4 months, and in turn sell them for higher profits. Flipping is being considered as a short-term cash investment wherein a flipper don’t spend any money on repairs or property improvements because the real estate investment has to have an intrinsic value to make profit without any alteration. While there are those real estate investors who prefer to buy reasonably priced or cheap properties and renovate them to add value, and sell them at a higher price.
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