Are you planning on getting started with Investing In Real Estate during 2017? If so, you’re not alone. Thanks to the excellent returns from Real Estate many investors have chosen to invest in rental properties in Houston, and across the United States.
Before getting started with investing in Real Estate you should follow these 5 basic tips for investing in Real Estate.
The old adage that “location matters” is most accurate when it comes to real estate investing. Before you fork over a down payment and put yourself in a significant amount of debt over a property, ensure that it’s in a good location.
Look for the worst house on the best street. That’s a principle you’ll come across quite a bit as you delve into further real estate investing advice.
You want to invest in the worst house on the best street because it gives you an opportunity to build equity. It’s a property in a great neighborhood (“the best street”) that needs some work (“the worst house”). You can invest some money to fix it up and sell it to someone else who wants a ready-to-move-in house in a fabulous location. Professional real estate investors call this “fixing and flipping.”
2. Look for Wholesale Properties
Investing in real estate is just like investing in the stock market in at least one way: you’re looking for the best deal. If you’re a savvy stock market investor, you probably won’t buy too many stocks at their high if you plan on holding them for a long time. Instead, you’ll follow the Warren Buffet principle of getting greedy when everyone else gets fearful. You’ll buy stocks that are beaten down and make a fortune when they turn around.
That’s what you want to do when it comes to real estate investing. Avoid paying “full price” for properties. Instead, look for so-called wholesale properties that are offered at a steep discount. Sure, they’ll probably need some work. Run the numbers and see if the investment in rehab is worth the ultimate selling price.
As noted at ThinkConveyance: “You can easily invest $20,000 in a property and add twice that much to the selling price. That’s why real estate investing is so attractive to investors who want to maximize their return on investment.”
3. Understand the Tax Benefits
The people who run our government want private investors to provide housing for people. That’s because they know that if private investors don’t provide housing, then the government will be responsible for it.
To that end, Uncle Sam offers significant tax benefits to real estate investors. The most significant benefit, arguably, is the depreciation write-off. When you buy an investment property that includes a building, you get to write off the depreciation of that building as a tax deduction. You’ll have to consult your tax advisor for specifics, but basically you can expect to depreciate a residential building over 27 years and a commercial building over 39 and a half years.
Keep in mind that the IRS views your real estate investment efforts as a business so you also get to claim the “necessary and ordinary“ deductions that business owners take, including mortgage interest, insurance, and maintenance expenses. Again, it’s a good idea to consult your tax advisor about specifics.
4. Check Your Credit Report
You’re more than likely going to need to borrow money to buy real estate. That’s why you should check your credit report before you begin investing in real estate.
If you have problems on your credit report that are mistakes, get those resolved as quickly as possible. If you have problems that are legitimate, then you’ll need to work to improve your credit.
Simply put, banks aren’t going to loan money to you for a property that’s not your primary residence as readily as they’ll loan it to you for your own home. That’s why your credit has to be spectacular.
If you’re planning on buying a property that you’ll rent out one or more tenants, use the “1% Rule” when you decide whether or not the property is worth the price you’ll pay for it.
The 1% Rule simply states that an income producing property must produce 1% of the price you pay for it every month. For example, if you’re looking at buying a property for $150,000, then the monthly rental income should be 150,000 x 1% = $1,500.
Get Houston Texas Property Management
As you grow your portfolio of rental properties you’re going to need an experienced Houston Texas Property Management company because a property manager will save you the time, money and hassle of managing those rentals yourself. Learn more about the services we can offer you by contact us today at (832) 971-1841 or click here to connect with us online.
Are you thinking about investing in Houston Texas Real Estate but are’t sure if now is still a great time for you to invest in local Real Estate?
In this article we will share with you several reasons why you should consider investing in the Houston Real Estate Market.
Unlike the stock market where your investments will gain or lose value if there’s a correction, Real Estate is a safer investment because your investments as a landlord will not be tied to any other vehicle like bonds, stocks or mutual funds so when the stock market has a correction you won’t have to worry about having your Real Estate investments lose value.
Excellent Hedge Against Inflation
Thanks to your Real Estate investment you won’t have to worry about inflation because with your rental property you can just raise the rent annually if there’s a clause in your rental agreement or if you get a new tenant for your rental property.
Last of all, but most important, when you invest in Real Estate you can depend on stable growth because the value of your property shouldn’t drop by a large percentage in a normal market compared to stock markets where it’s not uncommon to expect large drops like what happened in China last year.
The final reason to invest in Houston Texas Real Estate is the face that your investment will continue producing cash flow for you over the months and years to come.
More Investors Prefer Real Estate
Research any major investor including Warren Buffet and you will see that most investors prefer investing in Real Estate because of the excellent returns you will get from investing in rental properties.
Get Houston Texas Property Management
For affordable Houston Texas Property Management contact Vestpro Residential Services by contacting us at (832) 498-0016 or click here to connect with us online.
If you take a short drive through Houston Texas it’s not hard to miss the construction of apartments and other multi-family buildings around town.
Don’t let the construction of those multi-family homes fool you, there has been a huge increase in the construction of single family homes in Houston Texas and across the United States.
15.1 Million Single Family Homes Built Since 2006
Yes, construction of apartments, town homes and condos has been on the rise in up to 30 of the top apartment markets nationwide, but construction of single family homes has increased as well and as of July 2015 close to 12 percent of housing units nationwide are single family rental homes; that’s one out of every nine homes.
Big Increases over Last 10 Years
Over the last 10 years we’ve seen big increases in the construction of single family homes and to be exact there has been 35% more single family homes built nationwide since the mid 2000’s.
What’s interesting about the increase in single family home construction is that close to 4 million single family homes have become rental homes while just 2.9 million rental units became apartments.
How to Buy Single Family Home Rentals
To get stated with buying Houston Texas Single Family Homes do the following:
- Define the type of rental property you want to purchase (IE: 3 bedrooms, 2 bathrooms, garage and yard space) then stick with it.
- Know where in Houston you want to purchase a rental property.
- Find out who you want to rent you Houston Texas Rental property to. This step is important because each time you have a vacancy you will be able to advertise your rental to the right segment of the rental market.
Get Property Management Here
To get property management for your Houston Texas Single Family Home contact Vestpo Residential Services today by calling us at (832) 498-0016 or click here.
By Vestpro Residential Services, LLC
HOUSTON – Are you thinking about investing in Houston Texas Real Estate? If so, you’ve come to the right place.
In this article we will break down the reasons why you should not wait to invest in Houston Texas Real Estate.
Reason #1 – Demand
Thanks to a recent study by the Harvard University Joint Center for Housing Studies and their 2015 State of the Nation’s Housing Report we know that demand has been one of the primary factors which has been driving the Real Estate market during 2015.
There’s been huge demand for rental properties and an even bigger demand for homes for sale thanks to historically low mortgage interest rates which has brought out the first time home buyer, and casual investor, in search of Houston Texas Real Estate and homes nationwide.
Reason #2 – Mortgage Interest Rates Will Increase
Many economists predict that Federal Reserve Chairwoman Janet Yellen will be increasing mortgage interest rates gradually in the coming months and these increases can mean the difference between paying less money now for a mortgage payment, or more if you buy a home in the future.
Reason #3 – Home Ownership Has Dropped While Renting Has Increased
Last of all, but most important, you should invest in Houston Texas Real Estate is because of the fact that renting has increased across the United States while the actual homeownership rate has decreased.
With a greater demand for rentals nationwide especially among Millennials and Baby Boomers it makes sense to invest in Real Estate because that demand isn’t expected to change in the coming years.
For more information on what you need to do to get started with investing in Houston Texas Real Estate contact Vestpro Residential Services, LLC today by calling us at (832) 498-0016 or CLICK HERE to connect with us online.
By Vestpro Residential Services
As a long time Houston Texas Home Owner you’ve been watching the news lately and are wondering if now is the right time for you to sell your home since you plan on retiring and downsizing in the next few years.
Before you decide to list your home here are 3 reasons why you should consider holding onto your home and renting it out.
Reason 1 – Cash Flow
A rental property will bring in positive cash flow which you can depend on in your retirement and use to supplement your income from investments or social security.
Reason 2 – A True Asset
When you own Real Estate you will still continue to own a true asset and this also means you can refinance your home then use that additional income to invest in your retirement as well.
Reason 3 – Owning Rental Property Is Easy
Thanks to property management services like Vestpro Residential Services you will be able to rent out your Houston Texas home without the traditional hassle or headaches which come with owning rental property.
We take care of everything for you so you can enjoy life and rental income as well.
Rent Your Houston Texas Home
To rent your Houston Texas Home contact Vestpro Residential Services today by clicking here to by calling us at (832) 498-0016.