3 Tips for Doubling Your Money with Your Real Estate Investment
When investing in real estate, you certainly want to earn as much profit as possible. While there are no guarantees within the industry, there are a few simple steps that you can take to help increase the profits from your real estate investment. In fact, with these tips, you may very well be able to double your money when investing in real estate.
Tip #1: Choose the Right Properties
Simply put, the number one key to doubling your money with real estate investment is purchasing the right property. This means selecting a property that is likely to attract the largest number of potential renters. Some ways you can ensure your property will be in demand are to consider whether or not the property is convenient and likely to attract families.
When considering whether or not the property is convenient, you should take a closer look at is location and the things that are nearby. Things that are typically in demand amongst renters that they would like to have nearby include:
- Colleges and Universities
- Public Transportation
Being near these conveniences will not only make your property more attractive to potential renters, but it will also allow you to command a higher price for your property.
Similarly, you will increase your chances of finding a tenant who will stick around for years if you choose a property that will be attractive to families. This means choosing a property that is in a good school district in an area with a low crime rate.
Tip #2: Keep the Investment Price Low
When you first get started with investing in real estate, you will want to find a nice starter home that is not too pricey. Not only will this help you to get comfortable in the business, but it will also increase your chances of turning a good profit. After all, the less you have to invest in the property, the less you have to make in order to make it profitable. The savviest real estate investors look for properties that are priced at about ten percent below the average price of homes in the market. If you go much lower than that, you are likely to be getting into less desirable neighborhoods or homes that require too much work to be properly fixed up.
On the other hand, going above ten percent means you are not getting a good bargain. Furthermore, the last thing you want is for your investment property to be the most impressive home in the neighborhood, as the other homes around it will only bring down the value. Shoot for something that is more toward the middle in order to get the most bang for your buck.
Tip #3: Enlist in the Help of Professionals
Finally, you can increase your chances of doubling your money when you enlist in the help of professionals. With the help of a property management company, you can rest assured your property will have a tenant, that it will be properly maintained and your rent will be collected. In this way, you can simply sit back and watch the money come in as you look for other potential properties in which to invest.