Most people know there is money to be made in real estate, but they aren’t sure how to break into the business. It takes time and money to become a real estate agent, and flipping houses is a high-risk investment. So, what would a real estate expert recommend you do? Consider purchasing an investment property.
What is an Investment Property
An investment property is any property you buy in the hopes of making a profit. The most common type of investment property is a long term rental property. Investors purchase single family homes or apartment buildings and rent them out.
Investment properties can also be rented out in the short term. Many investors are buying properties in popular vacation spots and renting them out through Airbnb and VRBO.
Things to Consider When Buying an Investment Property
An investment property can turn into a money pit if you don’t do your homework. If the property already has tenants, request a background check and credit report from the current property owner. You don’t want to inherit a tenant who doesn’t pay their bills.
Neighbors are a great resource when you are considering buying an investment property. Introduce yourself as a real estate investor and ask about the current owner and tenants of the property you are interested in. Most people love to gossip. If there have been any noise complaints or police activity, the neighbors will tell you.
If you’re interested in short term rentals, ensure there are no restrictions put in place by a homeowners’ association. Many HOA agreements have a clause preventing rental periods shorter than 30 days.
Do You Need a Property Management Company
Managing a rental property is a lot of work. Are you prepared to answer frantic phone calls at 3 o’clock in the morning when a toilet overflows? Do you know how to effectively screen potential tenants? Are you willing to spend your weekends doing maintenance? Don’t worry; a management company will take the stress out of owning a rental property.
What to Look for in a Property Management Company
Search for property managers Austin who focus on high-end properties. When a property management company manages low-end properties, they spend the majority of their time chasing down tenants who owe rent money, appearing in court for eviction proceedings and repairing the damage done by inconsiderate renters. Luxury property managers are skilled at finding qualified tenants with clean rental histories.
Find a company like Austin Luxury Realty that is a real estate brokerage and property management firm. They will help you locate, purchase and manage your first investment property.