This Denver real estate investor tips would not be complete without tips for new investors on how to get started. Real estate investing can be profitable for the investor so pay attention to the details and use good common sense.
Real estate these days can be a good investment, if you know what you are doing. If you are new to real estate investing in the Denver area, here are some tips on what to look for and what to ask yourself before jumping into the real estate investment business.
Start with how many tenants you want to have. For a beginner in real estate investing, starting with a single family home is a smart decision. A single family home means you’ll have fewer tenants to deal with.
Some think that starting out with a multi family unit, like a duplex or several apartments is better because it will bring in more income. It is true that would be the case, doing multi units can be very overwhelming for a new investor. If you find yourself in this situation, find a good property management company to assist you.
Denver real estate investing tips must include information such as learning the age of a property, which is also an important factor. An older property may be a better deal when looking at price, but it can mean a delay in being able to rent due to maintenance issues. If the home is run down, fixing it up can be expensive and time consuming.
If it takes a few months to get it into condition to rent, you have lost the income of those months. Add that lost income to the amount you will need to fix it up to the purchase price, and then compare that to the price of a newer property. That “deal” may not be such a deal after all.
The location of the property is important as well. If the property is in a sketchy part of town, your ability to rent it for optimal rent is much less. However, if it is in a nice neighborhood, premium rents are definitely more than just possible.
Real estate investing means having many things to consider. New investors should use the services of a good management company to help them through the process and to keep them from making costly errors.
If you have ANY questions about getting started in investing, give me a call today to find out about the Denver and Fort Collins real estate investment markets! Tena D 303-452-5853