Buying and selling real estate can be a tough situation, but can pay off in passive income and equity. The purchase of real estate for an investment takes market knowledge and research of individual properties meeting your desired criteria. Be prepared to purchase your ideal property quickly as you will be competing with other investors to purchase income producing property. The investment property must be able to make a profit.
It can be done by selecting a growing market, choosing an optimum property and making sure you purchase at the right price. Unless your property is in very good condition, be prepared to incur some expenses to get it ready to rent. These repairs can include such things as painting or replacing appliances. You will need to keep this in mind in order to get the highest amount of rental income as possible.
Knowing When to Buy and Sell
There are a few ways in which real estate investment can be done. Investors need to have a plan moving forward to purchase a property that brings in the highest amount of rent for the market area. The investor also must decide what he or she can afford. Selling the property for a profit when the market dictates is important. Knowing your investment property market at all times is key. Timing the sale of your investment real estate takes some planning and foresight.
- Buying Investment Real Estate Buying the real estate for an investment can be done in a number of ways. There is the option of purchasing a house at the right price, doing some renovations if needed, and then renting the property out. This must be done in a growing market in order to reap the most appreciation out of your real estate asset. Another option is by purchasing distressed property at a discounted price, renovating it and reselling or “flipping” real estate. It is important to purchase this type of property in a market area that is undergoing a “rebirth” or “gentrification” so that buyers are willing to purchase such properties when renovated at an optimum price, once the property is renovated.
- Selling Investment Real Estate When selling an investment property it is important to time it correctly. Your investment needs to be sold at the right time to ensure that the profits will be at their highest. You will need to track sales in your investment’s area so you can sell at the right time. The real estate investor may decide to sell when the mortgage is paid off or as appreciation overtakes the amount of income the property generates. When flipping houses it is often looked at as the more houses that can be flipped and sold the better since it is a quick turnaround for an investment.
When buying and selling investment real estate take time to research your target market location and optimum type of property. The investment can definitely pay off when it’s done right. Keep in mind the long-term hold period with an eye to building equity with your income property.
Contact Gene Mock, Premier Team 703-342-8100 for professional guidance in real estate investing