Excited about investing in real estate, but a little stressed too? That’s normal. Real estate investments come with a lot of benefits. You’re earning consistent cash every month, you’re watching your asset increase in value while tenants pay down your mortgage, and you’re taking advantage of numerous tax breaks and write-offs.
But, investing isn’t always easy, especially not when you’re new to this.
Our best advice is to educate yourself and surround yourself with experts who can help you avoid common investment mistakes. Here are some additional tips on how to reduce the stress of buying your first investment property.
Get to Know the Real Estate and Rental Market
To succeed as an investor, you’ll need to buy the right property at the right price. This requires you to understand the local market. Currently, we’re seeing a competitive market in Orlando and throughout central Florida. A lot of investors are looking for the right opportunity, so you might feel pressured to make an offer on any property that falls into your budget.
Be more strategic than that. Set some investment goals and pay attention to pricing, neighborhoods, and how long certain properties are on the market. This will help you make better decisions on where you want to look.
Consider the rental market as well. Where are rents the highest and where do well-qualified tenants want to live? Having this information will reduce the stress you feel about what kind of property you should buy and in which neighborhoods.
Put Together an Orlando Real Estate and Property Management Team
Before you invest in your first rental property, talk to an agent who understands the unique needs of investors. You’ll also want to talk with a property management professional who can help to alleviate a tremendous amount of stress. Good property managers can save you from buying the wrong property.
There are other professionals you’ll need to rely on when investing for the first time. Assemble a team that includes:
- Legal advisor
- Broker or lender
- Investor-friendly real estate agent
- Property manager
- Accountant
- Insurance expert
When you’re working with a talented team of experts, you’ll feel better about the steps you’re taking to buy an investment property. You’ll have the benefit of experience, resources, and general knowledge about the industry and the investment process.
Get Your Financing in Order
For many new investors, the most stressful part of buying a rental property is finding the funding.
Choosing the right lender will remove a lot of stress from the first-time investment process. You’ll want to work with someone who specializes in investment properties and has made loans for rental properties before. You’ll likely need 20 percent as a down payment. Interest rates have risen recently, and you’ll need to understand the full cost of your loan before you decide how much to borrow and how to budget for future expenses.
Calculate all your costs and then consider your mortgage repayment with insurance and taxes before choosing to accept a loan.
These are just a handful of things you can do to reduce the stress of investing for the first time. Contact us at Park Avenue Property Management for some help with buying your first investment property. We work in Lake Buena Vista, Orlando, Kissimmee, Celebration, Maitland, Altamonte Springs, West Palm Beach, Tampa Bay, and throughout central Florida.