Investment or income properties are a great way to create ongoing income and cash flow, as well as gain tax benefits, but there’s a lot to consider when deciding to invest in this type of real estate.
If you’re a first-time investor who’s thinking about purchasing an income property, we, at Team Beltran, are especially equipped to help.
Not only do we have loads of experience working with new investors, we started out as investors ourselves before we went into real estate full time. So we have a unique understanding of this niche, both as sellers and as buyers.
If you’re interested in investment properties but intimidated by the whole process, here are five tips to get started with confidence:
1. Start small. Small multifamily buildings (duplexes, triplexes and fourplexes) are the safest path you can take to begin making money in real estate.
2. Complexes under five units still qualify for residential loans so you can avoid the complications of commercial lending.
3. By starting with a small multi-family property, you gain first-hand knowledge of how the rental world works, which will be useful if, one day, you want to invest in larger properties.
4. Consider living in one of the units. You can take advantage of owner-occupied rates, which are lower than investor rates.
5. Consider the season. Fall is a GREAT time to buy because there are fewer buyers out and about, which means less competition. Also, sellers are often more eager to SELL before the holidays hit, so you can find an investment property at a price that’s right for you.
For a breakdown of the advantages of owning an income property, check out 5 Benefits of Investing in an Income Property.
Please don’t hesitate to give us a call if you have any questions. We’d love to answer any questions you have and discuss your options.