Making the most of your Real Estate Investment

Looking and watching for the next real estate market can be exhausting.  Is the market going to go up or down? How many people would want to live in the area you are considering? Are the values going to be their for you today and in the future?  What is the mortgage market going to do?

These are just some of the questions you should be asking yourself when searching for any investment real estate. The problem is always time and finding the information.

The solution to all the questions is to first understand what you want to buy. a condo-home-duplex-apartments etc.  Having that knowledge will help you choose.  Let me give you my example on what I buy.  I buy investment homes for my portfolio that will cash flow now and are sell in the future if I choose too. 

I would have duplex’s but my clients get those because of the scarcity of them.  I am very picky about where our company purchases Duplex’s.  The quality of tenant is very important for this kind of property.  The best areas attract longer term tenants which generates more income and less turn around.   Turn around is very important for the life of your property.  The more tenants coming through the more cost in maintaining period.

Make sure that your area is one that has amenities and good schools.  Basically ask yourself would you want your kids going to your potential school district?  Look at the private schools in the area also if there is any. I always go into neighborhoods and look for great shopping and eateries.  I like to see a Starbucks or a coffee house in the area.  Look for names you recognize like Walgreens,Target,Walmart,Banks etc.  This will give you a good idea of the area.

Let me give you another example if you see a Nordstroms or Neiman Marcus you know there must be people with high incomes in that community.  If you see Kohls or Target you are probably in a high to medium income area.  This is really important to know so you can understand what type of potential people are in that neighborhood to buy or rent your property.

The last thing I will go over is the mortgage market.  Watch the loosing up of lending for the housing market in the near future.  When that happens there will be more buyers .  Even with the rates at 4% it is still a very low rate.  I remember in 1985 rates were over 10%.

So keeping these things in mind in your market can help you make the most on your real estate investment! Brett Young

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