Real estate investments: they can ultimately leave you with a pretty penny if you make the right decisions. Here are more of our tips for beginning investors looking to make money off of the properties they purchase.
Be Knowledgeable: If youíre planning on renting out a property, make sure you have a clear-cut understanding of the operating expenses associated with so doing. Key financial aspects to consider? Loan payments, vacancy costs, taxes, and cash flow statement.
Donít Be Taxed by Taxes: Know ahead of time how much the taxes for the property are, and use low rates in your favor to increase cash flow. If need be, work with a tax advisor to sort the situation out.
Be Utilitarian: And have an idea of how much utilities will cost each month based on local rates so potential tenants can budget for their payments.
Expect an Inspection: Whether youíre moving in or renting out, having a comprehensive inspection conducted is key to making sure you donít wind up with a money pit on your hands, and that any structural, mechanical, and cosmetic issues that need to be addressed can be fixed before you close the deal.
Itís simple: follow these steps and expect to see a greater return on your real estate investment. For more information about real estate investments, please take a look at part one of in this series, here. And remember, if youíre looking to buy or sell a property in Maryland, the real estate experts at the Team Edge can help.