We all want to invest in real estate. You choose the home with the most potential, fix it up a little bit, and then rent it out for years to come – piece of cake, right? Not quite.
Successfully investing in real estate so that you can turn an attractive profit takes a lot of education, or the help of a professional partner you can trust.
It will rarely be easy; but it will almost always be worth it. One of the most important steps in addition to educating yourself is to set expectations prior to engaging in the process. This will eliminate unnecessary frustrations that may arise throughout the process.
Consider the following…
- If you’re trying to secure a property immediately, financing could take several weeks. Cash is the best option for “buying NOW” – paying cash is also an interest-free transaction.
- Depending on the extent of renovations that are necessary to make the property livable (and rentable), construction can take several months. It’s usually 1-3 months but large renovations can take much longer, meaning that you cannot rent the home during this time frame.
- Post rental listings in advance. It is uncommon to find a great tenant on Day 1. Posting early allows you to sift through candidates and plan for the months ahead so that when the house is move-in ready, your tenant is ready as well.
- Long-term rentals are more attractive than short-term rentals. Each time a tenant leaves, you’ll need to repair any wear and tear, clean, and probably paint – this could result in weeks without rental income. Long-term tenants will reduce the number of times you need to have the property “polished!”
- Always remember that a real estate investment, unless you are immediately flipping the property, is a LONG-TERM investment. The beauty in owning a rental property is that it will bring in income each month for years and years to come, but this is not something that happens overnight.
- Look at the first-year as an investment in itself, not an income generating time frame. The first year always has acquisition costs, rehab costs, and a personal time investment in order to find the ideal tenant.
The above mentioned considerations are not meant to scare you away, but to instead ensure that you enter the process with an open and understanding mind. You will see a great return on investment, but it won’t be in the very first month. Just visit our homepage for some real properties and real numbers surrounding recent investments!
Want to get started, with professional help on your side? Fill out the Investor Profile Sheet to receive a call from one of our Account Executives if you yourself are interested in investing in rental properties here in Tampa. We’d love to learn more about your investment goals!
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