With the current volatility of the housing market, it's hard to know if the smart move is selling or buying. In times of uncertainty, one of the best real estate investing tips is to hang onto what you've got and rent it out to a tenant.
If you're just starting out in your real estate investing journey, you're in the right place. We're going to talk through four essential tips that should help you move in the right direction. We hope the ideas below help you make a little more money with your Denver investments.
Let's get started.
1. Find Your Level of Involvement
Your desire and willingness to be involved with the investment is important to understand. If you're more engaged, you might want to flip houses, buying them only to repair and resell them. An engaged investor might also want to rent the home and manage the property themselves.
These strategies are certainly lucrative, but they require a lot of effort. Passive investors might be more inclined to purchase a home and take a hands-off approach rather than become landlords.
In that case, you could hire a property manager to deal with tenants and all of the property marketing, leasing, tenant screening, and maintenance that goes with renting. Note that there are specific laws related to handling Denver tenants that you might not be privy to.
2. Play The Long Game
While real estate investing is one of the most lucrative ways to invest, you can't always hit home runs. Picking the optimal times to buy, rent, and sell perfect properties can make you a great deal of money.
That said, starting small and working your investments up over time is a great way to go. Think of these investments in terms of their long-term growth, ability to sell, and ultimate results.
When you think of an investment in the stock market, for example, you might make choices based on how you think stocks will do forty years from the date of purchase. Similarly, you can work your real estate investing plan this way.
3. Utilize Support Systems
One of the biggest mistakes that passive investors make is trying to take on too much work. Optimizing your budget by doing it all yourself is one way to go, but it takes a toll.
Utilize different services like property management companies and investment strategists. These agencies cost money, sure, but they reduce your workload significantly. They also produce a better outcome which translates into more return on investment.
Property management companies can help you establish the optimal rental value, conduct inspections, do tenant screenings, and more. As the saying goes, "you have to spend money to make money."
4. Be Picky
Television shows and claims on social media might make investing, flipping, and renting houses look simple. Over the course of 20 minutes, you see homeowners refurbish, sell, and profit from their houses on television.
It's not always like that. Be very picky with the homes you choose and make sure you're confident about where your money is going. There's no harm in waiting a few months for the right property to hit the market.
Need More Real Estate Investing Tips?
We hope the real estate investing tips above were useful to you. There's a lot more to learn, though. We've got more real estate and landlord tips for you to work with.
Explore our site for real estate tips from rent collection to property accounting. Contact us if you're in need of great property management services to take some of the load off your shoulders.