Choosing an Everett investment property needs to be strategic and well-planned. When you acquire a new rental home, it needs to fit your investment profile and portfolio. If you’re making a purchase for the first time, it’s especially important to surround yourself with professionals who can help you avoid costly mistakes.
When you’re deciding what to buy, you’ll want to think first about your investment goals. Maybe you’re buying a retirement home that you plan to live in 20 or 30 years from now. Or, perhaps this is your strategy for diversifying and strengthening a growing investment portfolio.
Whatever your purpose, understanding your own goals and expectations is the first step in buying an investment property. Then, you’ll have to choose the right home in the right location and surround yourself with experts so you can be sure you have a successful experience.
Identify the Right Everett Investment Property
When you’re investing in real estate, you need to know what you’re looking for and you need to be able to identify it quickly.
Remember that you’re not buying a home that you’re going to live in yourself right now. Maybe you prefer houses with hardwood floors, granite counters, and a Jacuzzi on the back deck. All of that is great, but the tenants you’re hoping to attract won’t be looking for the same things.
This is going to be a rental home, so as you’re evaluating the marketing and looking for opportunities, think like a tenant. Consider location – is the home close to schools, commuter highways, shopping, and entertainment? Is there off-street parking if you’re considering a unit on a busy street? Are there HOA rules if you’re thinking about a single-family home in a gated community?
Avoid the trap of low-cost homes in need of work. Some investors prefer to buy fixer-uppers, but for an owner who wants to get the property on the rental market quickly, this is not the best way to earn money. Cosmetic upgrades and improvements are fine, but if there’s a full renovation that’s needed, you’ll be investing a lot of money into that work and delaying the rental income you have the potential to earn.
Identifying a Profitable Everett Investment Property
Focuon data and numbers and projections. These things aren’t always as fun as aesthetics, but they matter when you’re identifying an investment. Let the math lead the way when you’re looking for an investment property. You need something that makes sense financially.
Estimate your income and expenses. Make sure those numbers fit into what you need and expect from this investment. Your comfortable cash on cash return and cap rate will depend on your investment goals and what you need to make this purchase work. Run the numbers across several different scenarios. For example, what will happen if you have a vacant property for six months? How will your cash flow be impacted by maintenance work? These are things you need to factor in when you’re determining what you’ll earn and spend on a property.
Professional Everett Property Management
Get professional help.
Experienced investors know that gathering input and expertise from brokers, real estate agents, property managers, contractors, accountants, and legal experts can be invaluable when you’re buying real estate.
A good property management company can help you have a better investment experience. You can rely on a property manager’s local expertise and knowledge to estimate the amount of rent you’ll earn and the amount of time it will take to find a great tenant.
A good property manager can also discuss what kind of cosmetic or functional repairs and updates will be needed before the property you’re considering is ready for the rental market. Don’t wait until you’re ready to rent the property out to consult a property manager; find out what you need to know before you buy.
We’d be happy to help with any investment questions or with your Everett property management questions. Please contact our team at Real Estate Gladiators