Have you decided to dip your toes in real estate investing? If so, we have great news for you.
According to Gallup's 2024 "Best Investment Ratings," real estate remains the top investment choice for many Americans, with 36% of surveyed participants saying so. It has topped the rankings since 2014.
However, while a property investment carries relatively low risks, you should still do your due diligence to succeed in your venture. Our team at PMI Little Town has shared real estate tips and investment strategies to help you get started, so read on.
Determine Your Prospective Real Estate Market
The first step to successful real estate investing is putting your money where it's worth, which involves determining the best investment locations. A perfect example is Littleton, CO, which, according to USA Today, is one of Colorado's best places to move to. As the city attracts more new residents, the demand for housing will grow.
So, by investing in real estate in Littleton, you can capture part of its rental population and generate rental income.
Decide on a Rental Strategy
The type of renters you wish to market your property to is vital when formulating your real estate investment strategy. It can also influence the type of property you buy and its location.
For example, if you want to market to vacationers and offer them a short-term rental, your strategy should include looking for properties close to local attractions and tourist spots. However, if you want a more stable, consistent income, invest in properties viable for long-term tenancy. They should be close to schools, offices, and other amenities that residents need (e.g., banks, healthcare, shopping, etc.).
Get Rental Property Analyses
Buying the cheapest property without determining its rental income potential is one of the worst investment mistakes you should avoid. In many cases, "surprisingly" cheap properties can be "too good to be true, with their low price being likely due to:
- Having many structural problems
- Being in a terrible location that's far from everything
- Being in an unsafe neighborhood
So, before you shell out money on an investment property, run a rental analysis first. It can help you determine how much you can profit from that property with consideration of its condition and location.
The better the property's condition and location, the more it will cost. However, it can still be worth it in the long run since you'll be able to charge a higher (but still reasonable!) rental rate.
So, never skip a rental analysis. If you work with the right property management firm or brokerage service, they can give you one for free.
Real Estate Investing the Savvy Way
Real estate investing can be lucrative, but it can also be complex, especially for first-timers. The good news is that you don't have to go on the journey alone; reliable real estate professionals, such as our team here at PMI Little Town, can help.
We're a full-service property management company that provides high-quality brokerage services throughout the Littleton, CO, area. We're also a proud member of PMI, a larger property management company with over two decades of service history and $5+ billion of assets under its care.
If you're ready to become a savvy investor, speak with us today. We'll happily guide you as you invest in profitable Littleton properties.
