Tips For Purchasing Your First Income Property In Oak Park

By Joshua Carter


Investing in real estate is almost always a good thing, as long as you purchase wisely. Even if the housing market is experiencing a downturn, it will turn around eventually. When you get into the rental market and purchase your first income property in Oak Park, research it thoroughly, proceed with caution, and listen to the real estate professionals.

You need to stick with residential properties at the beginning. Buying commercial properties can be too complicated and time consuming for newcomers to investing. If you are considering buying a house that is currently rented, you need to know what kind of renter you'll be dealing with. The seller can give you a lot of information as to the stability of the tenant and whether he has a history of excessive demands.

Hiring a property management company will save you time. If you have a full time job and a busy family, you may not have the time necessary to keep up with rental properties. In this case, you should considering hiring professionals to do the job for you. It will be necessary to do some research to find someone reliable and charging affordable rates, but it will be worth it if it frees you up. Hiring a manager will also be helpful if you are new to the rental business.

Buying in the vicinity of apartment buildings is something most experts suggest. Doing this gives you the opportunity to expose your rental house to people who are already looking for properties to rent. Many prefer to live in single family homes, instead of apartments, when they have the opportunity. It may be that you can save money on advertising because there are so many renters in the area riding by your house every day.

You also want to look for rentals that are convenient to amenities. Community college and university students are almost always renters. If you can find good student renters, you might have occupants who stay for several years. Properties convenient to bus routes are always popular with renters.

Take advantage of the experience of existing landlords. If there is a landlord's association in your community you should join it. These are people with invaluable experience. Most are happy to give newcomers some advice and offer suggestions to avoid pitfalls. They will know the best plumbers, electricians, and landscapers as well.

If you are borrowing money to buy a rental, you want to put down plenty of cash. Investing in real property won't help you in the short term if all your profits have to go to paying a mortgage. You need to make sure you have positive cash flow. That way you won't have to divest properties if there is a slump in the housing market.

Consider real estate that is in ready to rent condition for your first investments. Unless you have renovated properties before, you will be better off looking at houses that are ready to move into, or already have tenants. This is the best way to see a quick return on your initial investment.




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