Thinking of making the leap into investment real estate? There are many reasons investment real estate can be a profitable endeavor, from high return ratios to diversified investments that don’t follow typical stock market trends. But it’s important to be sure you’re doing your research before you get started—almost as important as choosing to work with the right real estate team!
Here’s what you need to know about investment real estate.
Main Types of Investment Real Estate
1. Rental Properties
The most common type of investment in real estate is the rental property. You buy the home, pay the mortgage and expenses, and the renter pays you. Rentals can be residential (single-family or multi-family),
Look for in-demand locations (near amenities and attractions, major employers, universities or schools, and other hot spots) so you won’t have trouble finding interested renters. Be sure to consider the time and money you’ll require for marketing, finding and screening applicants, and maintaining the property (or hire a good property manager). And be prepared to see no or minimal profits until the mortgage is paid off!
Multi-Family Properties for Sale in DFW
Commercial Real Estate for Sale in DFW
2. Flipping Homes
There are two ways to flip a home. The first is to find a cheap property in an in-demand area and immediately try and sell it for more. Investors will browse foreclosure and short-sale properties that are often undervalued and sometimes in good condition and sell them at their appropriate resale value. The risk lies is not being able to get rid of the home quickly, or of spending too much on it in the first place.
The second way to flip a home is through home improvement. Here, investors take a more rundown home (again, often a foreclosure) and make modifications and improvements to the home to increase its value. Here, you run the risk of spending more money on the repairs
3. Real Estate Investment Groups
Here, investors can take part ownership of a property (often apartments or commercial real estate) and shares the profits amongst the owners. Maintenance and rental of the property
Want to Know More About Investment Real Estate?
If you’re thinking of investing in real estate in the Dallas Fort Worth area, then it’s time to contact Glazers Realtors. We’ve got the answers, the resources, and the solutions for all your real estate questions and concerns. Give us a call to learn more or to get started.
Selling an Investment Property?
Have an investment property you’re planning to sell? Team up with Glazers Realtors to get the job done! Start by finding out just what your property is worth: