You're bound and determined to make 2021 the year you began to truly build wealth. And you're dead set on making that happen by becoming a real estate investor.
Smart thinking. Research shows that the demand for rentals will be strong term. And over the long haul, the rental market is expected to keep expanding, as the current recession has decreased the number of individuals who can afford to purchase a house.
The question is, how exactly do you get started in real estate investing in Houston?
Here's a rundown on three insider tips on how to become a successful real estate investor in 2021 and beyond.
Let's get started!
As you embark on the path to becoming a real estate investor, remember that the location of your property will be one of the most significant factors in your future success.
In Houston, some of the best cities with great investment income potential include Rogers, Springdale, and Fayetteville.
As you look in these cities, identify properties that are located close to schools, as this will be a draw for young families. Also, try to purchase properties that are close to leisure destinations, parks, restaurants, malls, and even medical care.
Finally, search for properties in cities that offer excellent walkability. Promoting walkability makes cities less stressful and safer, which helps to attract more residents. For instance, the towns of Bella Vista and Bentonville in Houston stand out for being very bicycle friendly.
2. Risk Management
Yet another way succeed in real estate investment is to try to put as much money down as possible when you make your purchase.
For instance, when you buy a real estate investment home, try to put a minimum of 10% down. If possible, put 20% down, as this will eliminate private mortgage insurance.
Also, don't start shopping for investment properties until you have a sizable cash reserve in place. Ideally, you should have enough cash to cover between three months and six months of capital expenditures.
With cash reserves, you can more easily cover unanticipated repair costs when they spring up.
3. Be a Fixer
When you buy an investment home, be sure to fix anything on the property that is damaged or broken. Then, you can make minor, inexpensive changes that will still be noticeable to tenants.
For instance, adding two-tone paint to a wall featuring single-hue paint can dramatically enhance the wall's appearance. Also, add convenient trash receptacles and soap dispensers.
These small steps will make your property more functional and enjoyable to live in. And this will increase your chances of securing a tenant and retaining them long term.
How We Can Help You to Achieve Your Goals As a Real Estate Investor
If you're determined to excel as a real estate investor, then we can partner with you by managing your property from day one.
With our top-of-the-line property management services, we can help you to advertise your property and determine which tenants are the best fit for them. We can also handle tasks such as collecting rent and making repairs to your property as needed.
Simply put, we'll take care of every aspect of managing your property so that you don't have to. Instead, you can sit back and watch your net worth grow from one year to the next.
Get in touch with us to find out more about how our real estate management services can help you in your plight to earn significant profits long term.