Residential Real Estate: a Gold Mine

by : Jim Olenbush

Residential real estate can be your ticket to the good life. More people are making fortunes with real estate investments, what's stopping your from being next? Investing in real estate is not a terribly complicated endeavor, all it takes is some careful planning and an attention to detail and the willingness to do the required legwork and research. This article will outline a few pointers about investing in residential real estate that should be helpful in starting out in this highly lucrative industry.

  • Plan Ahead - This is probably the most important thing that you can do when getting into the real estate game. Before buying you should be completely familiar with the area that you have chosen to buy in. Get to know the community and what it has to offer in terms of amenities, shopping, education, and recreation. Also its a good move to find out what the future of the community holds in terms of planned construction both commercial and residential. Also what, if any plans are there for actual development by the community itself? This refers to things like parks and roads and other public, government-run facilities.

  • Get yourself financially ready - If you are renting the proposed property then make sure you have a fair amount of reserve capital. This will give you the ability to make mortgage payments (if applicable) during the time that the property is not rented. Another good thing to do is to ensure that you have proper insurance for a rental property. Always make sure that you have your financial interests protected as well as they can be.

  • Be choosy about the property - Make sure that the property you buy fulfills all the projected needs of the tenants and yourself. Firstly, never buy a property that has not passed an accredited inspection. This is a vital step as properties that cannot pass an inspection are not worth investing in unless you are planning on renovating the home. If this is the case, then make sure you know what needs to be done to pass an inspection. This is more common in the world of flipping homes as the renovation and rejuvenation of a home can see some fantastic profit if done correctly.
Essentially you want to make sure that the money that you spend on the acquisition and upkeep of the property is justified by the amount you receive in monthly rent. If you are planning on flipping the home then your new asking price must be in accordance with what you have spent on upgrading the home. Spend some time doing the legwork required and your property investing experience will be much smoother and stress-free.