Do:
- Keep track of the numbers – When investing in a property, you want to ensure you are keeping track of any and all expenses. The cost of the mortgage, the cost of any upgrades, utility cost, etc. You want to be able to look back on these numbers in the future to see how much money you have put into your investment!
- Do your research – Whenever you’re making any kind of investment, you want to be confident that you have all the necessary tools to make informed decisions about your future investments. Taking the time to meet up with your local realtor or visit the area you’re looking to invest in can mean the difference between making or losing money in the long run!
Don’t:
- Focus on the future value – This may sound counterintuitive, and it is. Your decision to invest in the first place is typically based on how long you will continue to see your ROI. The danger surrounding this mentality, however, is the housing market and economy are constantly changing. What a house is worth right now may be worth half of what you bought it for 5 years from now. Ensure you are focusing on how you can maximize your ROI in the present, not just the future.
- Trust Blindly – While it is important to reach out to experts to learn more about a subject you are unfamiliar with, you must pay attention to the person’s intentions. For example, the investor you wanted to partner up with you may be trying to convince you that your investment is not a good idea so they can go in and invest in the property by themselves. Seek out help, but be cautious!
These are just a few of the Do’s and Don’ts of investment properties. If you would like to learn more or have any questions about real estate, let’s set up a time to chat!
