Watching Over Your Real Estate Investments
...Like a Hauck!

So, you are thinking about buying or investing in a home?

With the recession at it’s end, many people like yourself are thinking it’s a great time to buy a house or invest in multiple properties. Single family homes, townhouses, condos, luxury properties, and commercial…it is still a buyers market as we begin a new decade. One of the best ways to find hot new properties to invest in is by going thru a licensed Realtor– a licensed realtor has expertise in the market and has access to the MLS, a multiple listing service that allows them to quickly search for exact criteria and location as requested by the user. You might also want to consider Foreclosures & Short Sales which may be a great opportunity to purchase a home at very low prices, fix it up, and then sell for a nice profit.

Choosing a Property

When picking your properties to invest in, you need to analyze them thoroughly. Most people look at an investment as a strong one when the cash flow is positive: the higher the percent, the better. Tax benefits, appreciation, and leverage are other benefits of holding investment real estate but making positive cash flow after taxes and mortgage payments (or at the least, breaking even and then selling).

Prospective Residential Investments

When looking for prospective residential real estate investments, always keep in mind you’re generally looking for properties that have high demand. Buying homes in master planned communities, areas near shopping / restaurants, job opportunities, and quality schools can do wonders for your ability to find tenants and buyers. For some, a gated community is a desired feature that may better maintain the quality of the community. For others, a home with a larger lot, pool, or view of natural surroundings like a golf course or mountain view will allow the home to appreciate at a higher level than homes lacking them. Do some research as to which areas seem to be in the path of progress for economic growth, jobs, weather, crime.

Fast Appreciation

If you’re looking for quick appreciation, smaller properties and new single-family homes can be a great place to look. Of course, if you don’t mind getting your hands dirty, properties in need of some do-it-yourself handyman work can also be a nice source of investment properties for you.

Luxury Homes

If you are a luxury home buyer, consider the amenities of the neighborhood and the Homeowners Association fees, future plans and current amenities. If the investment property is one which features a view of the mountains or city views, are the city plans or community plans one which will sustain the view for many future years to come? Don’t be afraid to ask these questions. The more knowledge you have, the better. Most real estate agents have information readily available about school districts, median income levels and school districts in the communities they specialize in. For information about crime in an area, log on to the local police department website to get an overview of the history and recent activities in the communities of interest.

Condos and Town Homes

Condos and town homes are an interesting concept which some investors love to invest in them and others stay far way. On the negative side, condos may be problematic as they often are in competition with apartments for renters – making it more difficult for you to find tenants. On the positive side, the investor usually doesn’t have to worry about having to maintain the exterior of condos and you can purchase condos with little or no lot lines, allowing for a living space without the additional expenses that come along with single family homes, multiple dwelling properties. Pools and community amenities are usually available and shared with one common HOA fee. If you’re investing in a single family home and you are thinking about financing, then you’ll likely be putting 20% down on conforming loans – this is because of the changes in mortgage insurance restrictions. A good credit score helps so be sure to check your credit score and know before hand if you need to make any improvements or address any credit concerns.

With all the mortgage law changes, loans may sometimes be hard to come by, but if you have 20% available to put for a down payment, verifiable income tax returns for the last 2 years, and verifiable assets, then you’ll stand an excellent chance of getting approved. Local lenders may be your best source of investment funding.

Many investors are going back to the 30-year fixed loan approach in order to finance their investments. Adjustable Rate Mortgages (ARM), known as Variable-Rate Mortgages in other parts of the world, are too volatile and not practical for all investors. Consult your local mortgage lender for more information or to find out about how to get pre-approved to start your investing goals today!