Investing in real estate will still be one of the rewarding investments you should consider in 2021. Real estate will give you an opportunity to acquire assets that you can use to earn a passive income in the form of rent. At a later stage, you can also sell your real estate property at a higher price and yield a profit.
Landlords were wise enough to invest in real estate, and today he is reaping all the benefits of investing prudently. If you feel that buying real estate is what you’d like to do but renting out property is not for you, you have an option of buying undervalued property then flipping it.
Securing real estate property
While you’ll normally be required to put down a down payment of at least 20% to 25% in order to purchase, you’re still allowed to put an amount less than that. In 2018 the minimum amount you could pay as a deposit was $15,490, which is 5.37% of $270,000.
In the new year try one of the below real estate investment tips:
1. Start small
As a newbie in real estate, it’s advisable that you start investing in cheaper properties, just to get your feet wet. Look for single-family homes and rent them to single parents. This study shows that there are 31.1% of households are headed by single parents in California. Other residential rental properties that you should consider investing in include:
- triplexes, and
2. Study the market well before you invest
Make time to study the real estate market before you invest in it. Real estate experts do this all the time before they invest in real estate. Steven Taylor Los Angeles weighs the pros and cons of investing in a certain real estate portfolio and decides if the potential cash flow will be satisfactory to him.
3. Estimate maintenance costs
While there is less upfront money required to invest in residential properties, there are maintenance costs that you should assess before purchasing a property. Remember, each real estate property has its own unique maintenance costs, find out what they are, and how to manage them.
4. Find out if real estate rental is for you
Owning a rental property is one of the best ways of generating income. However, for your real estate portfolio to become lucrative, it requires your involvement, time, and dedication. So, if you are not as committed to your LA Real Estate as the most successful landlords are, your real estate business is not likely to take off.