5 Tips for First-Time Real Estate Investment Buyers
Investing in a property can be a lucrative source of income, but it can also turn into a financial burden if not done carefully. As both the Chief Development Officer at Patriot Family Homes and a personal property investor, Kate Homme shares her top five tips for first-time investment buyers:
Determine Your Goals: Before starting your search for properties, take some time to ask yourself why you want to invest in real estate. Is it for passive income or a vacation home? By understanding your motivations, you can narrow down the best property for you.
Shop Around For Lenders: Don't settle for the first lender you find. Different lenders have different fees and interest rates, so make sure to compare rate sheets and ask lenders to match offers from their competitors.
Draw A Hard Budget Line: Just because you're approved for a certain amount doesn't mean you should spend it all. Set a firm budget for yourself that takes into account monthly payments, mortgage, interest rate, insurance, taxes, and utilities if you plan to turn your investment property into a short-term rental.
Be Aware Of Geographic Factors: Depending on the location of your property, you may need to take into account flood zones, wind/hail insurance for coastal properties, and fire/earthquake insurance for West Coast investors.
Find A Customer-Savvy, Investment-Minded Realtor: Not all realtors are created equal, and investing in a property requires a different set of considerations than buying a forever home. Look for a realtor who is experienced with investment properties and understands what short-term renters are looking for.
If you're interested in partnering with Patriot Family Homes for property management services, visit our service page for more information. Don't let your investment turn into a money pit - follow these tips and make the most out of your investment property.