A Guide for Acquiring Your First Investment Property Investing in property can be a great way to make a return on your money, but it’s important to understand what you're getting into
Guide for Acquiring Your First Investment Property
Dated: January 29 2024
A Guide for Acquiring Your First Investment Property
Investing in property can be a great way to make a return on your money, but it’s important to understand what you're getting into before making such a big purchase. Doing some research will help you avoid disaster down the road. This guide from The Scott Yurchison Team will provide an overview of the steps you should take when buying your first investment property, as well as how to best manage the property.
The first step is researching the market and understanding what kind of properties are good investments. Calculate your budget beforehand and consider purchasing a property that needs some work, as this can save you money in the long run. Explore local home prices as well—New Smyrna Beach home sale prices have fallen quite a bit since last year.
You should consult with a lawyer and check the land records for any red flags before having it inspected. It's also important to check out the location: Are there any schools or shops nearby? What about public transport? These factors can all influence the value of your property.
When looking at investment properties, you’ll want to pay attention to several key details. Look for quality construction, check for damage or signs of wear and tear, make sure there is adequate insulation and ventilation, and inspect for safety hazards such as electrical wiring issues or exposed pipes. Keep an eye out for energy-efficient features like double-glazed windows or solar panels. All of these things can help make your investment more valuable over time. It's also helpful to find out what renters are looking for in a property, such as an updated kitchen or bathroom, so you can get the most out of your investment with a few changes.
You’ll also want to think about what updates should be made in order to attract high-quality tenants who will take care of your property. Consider painting walls, installing new carpets or flooring, updating fixtures and appliances, adding furniture, and landscaping the garden area. All of these things can make your rental property more attractive and result in higher rents over time.
Upgrading your rental property with smart home technology can greatly enhance its appeal to potential tenants. From smart locks that offer keyless entry and enhanced security, to smart thermostats that optimize energy use and provide cost savings, these upgrades can add significant value to a rental property. Additionally, installing smart lighting systems can offer both comfort and convenience by allowing tenants to control the lighting in their home through their smartphones. Lastly, smart smoke detectors and security cameras can provide an added layer of safety, making your property even more attractive to renters.
Forming an LLC
Forming an LLC can protect personal assets and provide simplified taxes for landlords. It can also establish credibility and professionalism, and offer flexibility in terms of management structure. There are five steps required to register your LLC, including naming a registered agent, applying for an EIN, and creating an operating agreement. Choose one of several formation companies to help you get set up quickly and easily.
Property Management Decisions
You may choose to manage the rental yourself or hire a professional company that specializes in managing rental properties. If you choose to go with a management company, choose one with extensive experience with rental properties in your area, so they know local laws and regulations related to tenancy agreements.
You should also consider hiring landscapers if you don't have time or expertise in maintaining gardens yourself. This will help keep up appearances around the property which can result in higher rents down the line.
When buying an investment property, it’s important to do your research beforehand so that you understand what kind of returns you can expect from such a purchase. It’s not just about making money, but also protecting yourself by investing wisely and forming an LLC. With a few key choices, you can turn an investment property into a roaring success.
For the New Smyrna Beach real estate expert you've been looking for, contact The Scott Yurchison Team today!
*Harry Cline, Author
Top Producing RealtorSpecialties: Buyer's Agent, Listing Agent, Relocation, ConsultingSpecializing in New Smyrna Beach and the Volusia County real estate market, you have found your Realtor resource f....
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