For months now, the U.S. housing market has been hampered by too few homes being chased by too many buyers. The shortage of properties is a problem not only for those looking for a place to live, but for those who are looking to invest in real estate. Far West Realty can help you guide the investment property market in Prescott.
Far West Realty helps consumers find investment properties in Prescott.Whether you’re considering purchasing a multi-unit complex for immediate rental, buying a home now with the idea of selling it a few years or profiting from the purchase of a fixer-upper that can be resold at a much higher price, here’s what to look for when considering real estate as an investment:
Plan on a big down payment. Mortgage insurance isn’t available for investment properties, so a 20 percent down payment is required to get traditional financing.
Enjoy being handy and fixing things. Opting for the landlord route brings with it lots of challenges.
Income varies. Tenants come and go. But you’ll still have to pay the bills, including mortgage, property taxes and insurance.
Property taxes. Depending on the type of rental property purchased and how long it is kept, investors could discover a big increase in property taxes.
Beware of fixer-uppers. If you’re new to investing in real estate, beware of taking on a bigger challenge than you can handle. A better option is to look for properties that need modest repairs that are priced at below-market rates.
Start small. While repairs present a challenge, so can buying a larger property than you’re ready to handle. Starting small – purchasing a single apartment, condo or duplex, for example – can help you get grounded in the idea of investing in real estate.
Keep your expectations realistic. Like any investment, a rental property isn’t going to produce a large monthly paycheck. Consider working with an experienced partner on your first property or rent out your own home to get your feet wet. For more information on investment properties contact Far West Realty at 928-772-9400.