This is what you do before buying investment property
I get calls every week from people thinking about investing in Nashville.
They’ve heard the news about Nashville being an “it” city, the consistent flow of tourists and the the strength of the real estate market.
Most of these calls are from out of state, but a few of them are right here in town.
Wherever they are from, these callers are usually looking for advice. And they came to the right place.
My decisions in life have rarely been impulsive. (Except for that time with the ski boat, and fortunately my better half forgave me long ago.)
So, I would attack investment property with the same due diligence and careful thought.
Here’s Five Things to Consider before looking at your first investment property.
- Dig deep and ask yourself these questions. Why do you want to buy investment property? What do you want to achieve? What are your short/long term goals? Answering these questions will help you decide if investment property is right for you and your plans.
- Determine how you are going to pay. If you are paying cash, how much should you set aside for expenses. If you are getting a loan: What lender to use? What type of loan is best for you? Answering these questions helps you see what you can afford and what you should avoid.
- Determine who is your ideal client. Do you want to rent to students, young professionals, people relocating, tourists? Determining your clients helps narrow down your choices based on their rental preferences.
- Determine how you are going to manage the property. You can self-manage the rental which is stressful and time consuming. Or you could hire a management company, which is less stressful and can eat away at your profits.
- Determine who else is going to help you with this transaction. In addition to the lender, you also need a Realtor, Inspector and Title Company that are experienced with investment property. Hiring the right people up front can make or break your buying experience. Make sure you interview and choose wisely.
If you have been considering investment property and did not know where to start, then give me a quick call, I’d love to chat with you about it.