If you’ve been thinking about getting into real estate investing in the Denver or Fort Collins areas, a buyer’s market like now is always a good time to jump in. But do you know what to look for in a good investment property? Here are some ideas for your “shopping” trips.
When looking for an investment property, don’t look at just price keep its location in mind. If the investment property is cheap, but in a bad neighborhood, you won’t get adequate rents. Choose a location with a lot of potential for growth, and think as you are looking “would I want to live here?”
Pick an investment property in a location that will make it easier for you to rent it out or sell it for a profit in the future. Remember that price is important, but if it is too cheap, there is a reason. Make sure to do adequate research, beyond what a seller will tell you, to find out about any property that you are seriously interested in purchasing.
Also keep in mind what type of property you want. Do you want to start off with a single family home, maybe a townhouse grouping, or an apartment building? You have to know what level of land lording you want to take on. If you are new to real estate investing, you might want to start with one house or two at the most. Also, you will need to keep in mind whether you want to purchase a property that will need upgrading. If you do this, go into it knowing time frames to get it ready to rent, costs to do the upgrades and how that will impact what you can pay for it.
You will also want to go into it knowing what rents you can charge. That way you don’t pay more for a property, or pay too much in fixing it up, and end up not being able to make money because you can’t charge enough rent to cover the monthly cost of owning it. You should also know what mortgage interest rates are, what types of mortgages are available for investment properties.
Contact a mortgage professional to make sure you know what you are getting into. Insurance is also something to add to the monthly cost of owning an investment property, especially if you plan to rent it out. If you are new to real estate investing, finding a property that is in a good location, is in good shape, and available to be rented right away is very important.
Getting into real estate investing in the Denver or Fort Collins metro area and want to to find out more? Give us a call today, we are always happy to let new or seasoned investors know about the real estate investing market! 303-452-5853