Real estate investing is gaining in popularity, and like any investment, the goal is to make money. It’s an ever-changing game, and if you don’t know how to play it well, you could lose. Here’s how to get started investing in real estate.
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Know the market
Study home prices in different areas and compare to see which are healthiest. Research property taxes to identify savings opportunities.
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Consider the suburbs
With rents and property values rising, the outskirts are popular alternatives to downtown. Research commute time before committing.
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Grade the schools
You’ll get a higher dollar value for your rental investment property if it’s in an area with good to great schools.
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Future development
Some of the neighborhoods won’t currently have all the amenities, but they might be on the horizon. Talk to neighbors or visit the town hall for development details.
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Know your limits
A lot of investment properties are vacant or need some rehab before they’ll start earning income. Know what you can (and can’t) handle in terms of repairs and upkeep.
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Talk to a bank
If you think you’ve identified the perfect place to invest in real estate, get your financing in order so you can make a decent offer.
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Start small and learn
You’ll want to start with something small and easy to manage, but with experience, you can replace your starter property with a bigger, more expensive — and more lucrative — option.
Real estate investing is accessible to everyone. A qualified agent can help you learn more about what’s available.
