Investing in real estate can be a lucrative endeavor. This is what makes the real estate market so special. The opportunity for financial growth with exciting avenues to pursue is more than enough of a reason for you to begin investing. The potential to break the bank is always there but you have to bear in mind that fortune doesn’t come without a cost.
When your investment property is used as a rental, you need to be realistic about your potential renters. There could be the likelihood of having a vacant home or building which you will need to pay to maintain. Calculate all of the property taxes and insurance that you are going to have to pay out of pocket and fine tune your budget so you have room to breathe if this were to happen.
Being able to manage your property with a full-time job may not be the easiest task. This may require you to hire a property manager to oversee the needs of the tenants. This could cost, on average, about 10% of your monthly rent.
A frustrating issue for both you and your tenant is an unexpected repair. Damages can cost thousands which is why hiring the right home inspector beforehand can save you the stress of having to deal with the whole ordeal.
Before you begin investing in real estate, you must have the appropriate funds. Your early experiences may be frustrating but the end result will be a rewarding one. Be sure to build up your emergency fund for the unexpected moments that come with every investment. With thorough preparation and a plan in mind, your financial future could be a bright one.
Bio: Kuba Jewgieniew is the CEO of Realty ONE Group, a real estate brokerage firm that created a platform that gives entrepreneurial real estate professionals the freedom, resources, strategies, and collaborative environment they need to realize their full potential.