Want to Invest in Real Estate? Here’s How to Get Started.
So, you want to start investing in real estate? You’ve come to the right place! Janice Burtis has decades of experience with short and long-term rentals—she bought her first investment property at 23!
From purchasing your first home to managing an empire of rental properties, everyone’s journey to real estate investing will differ. Here are some ideas for starting your real estate investment journey.
1. Select a Goal: Cash Flow vs. Appreciation
The first place to start when investing in real estate is asking yourself if you want an investment that will appreciate or offer cash flow. What’s the difference?
A cash flow property could be a short-term rental such as an Airbnb or a VRBO that’s in a good location with a high occupancy rate. However, focusing on appreciation might look like buying your first home or a long-term rental property.
2. Financing Your Purchase
There are multiple ways to fund your real estate purchases. Whether it’s an FHA mortgage, a conventional mortgage, or a Home Equity Line of Credit (HELOC), it’s easy to get creative when it comes to your purchase. However, this is a very important decision, because it will affect your cash flow down the line. So make sure you discuss your options with a loan officer to consider the best path for you.
3. Transitioning Your Permanent Residence
There are many communities that require buyers to live in their property for one year before transitioning the home into a rental property. While this isn’t always the case, it’s a great stepping-stone that allows you the time to financially recover from the initial purchase and prepare to become a landlord. Once the year is over, you will have the opportunity to list your home for renters. This will help you cover the cost of your mortgage while the property appreciates.
4. Consider a Duplex
While multi-living properties are not as common as a single-family home, they are a great way to embark on your investment journey. Consider living in one side of the duplex while simultaneously renting-out the other side. That way your renters can cover a large portion of the mortgage.
5. Home Equity
Have you already purchased a home? Well, you might have enough equity in your home to purchase another property. With the way the market has been moving, there is a good chance that your current home has accrued plenty of equity that could finance an investment property.
6. House-Flipping
We know you’ve already heard of the infamous house-flip scenario. This is where you buy a home in need of some work and channel some funds into fixing up the property—ultimately selling it for a higher price. There are plenty of HGTV specials about this method of real estate investing, but there’s not always a chance you’ll come out on top. Nevertheless, many people consider it an enjoyable hobby to flex their DIY skills.
Whether you’re just starting out on your real estate investment journey or you’re eager to build an empire, there are plenty of methods to find success in the real estate market. If you’re looking to purchase an investment in the Grand Junction area, Janice Burtis is here to help you achieve your real estate goals.
Reach out today to learn more about the right investment for you!