For many, a new year means new opportunities; however, in terms of finances, the holiday season tends to have many keeping a tighter check on their pocketbook at the beginning of the year. This feeling may be escalated if you are looking to invest in rental real estate.
Whether investing in real estate is brand new to you, or if this is your third or fourth property, you still are familiar with the overwhelming feeling that you get when you are asked to put 20% down on the property of your choice. This initial investment can feel almost impossible at first, but when you use the below tips from Real Property Management Metro Detroit you can start the new year off right.
The benefits are many once you have made the initial step in the investment real estate world, and with the expert guidance of your property managers, this impossible task will soon be the highlight of your year when you see how it can pay off.
1. Establish a Budget Early
Starting the year with depleted funds can be discouraging, but it is crucial to begin saving as soon as possible if your goal is to invest in rental property. By setting up a budget and adhering to it from the beginning, you can start searching for properties that fall within your spending range, which will save you both time and money in the future when you are ready to make a purchase.
2. Get a Side-Hustle
Additionally, consider taking on side-hustles, or freelance opportunities, to raise the 20% needed for a down payment. This could mean you take on extra hours at work, take fewer days off at the beginning of the year, start up a side/weekend job like Uber, or a variety of other opportunities based on your skill set. A few hard-working months at the beginning of the year will pay off when it comes to the opportune moment to purchase your ideal property and call it your very own.
3. Buy a Fixer-Upper
Even with budgeting and doing a side job, you may find that you will not be able to save enough for a down payment for your ideal rental property. As such, look into what you could afford. A way to reduce your total down payment is to purchase a fixer-upper. Homes that need repair are considerably cheaper and provide the benefit of allowing you to prepare it as you please for your future tenants. Repairing and remodeling a home yourself, or with a team, can even be a fun venture for your new year.
Use the above tips to purchase your 2018 investment rental property and contact Real Property Management Metro Detroit for assistance in managing your property. If you would like more information about our services, contact us online or call us at 248-808-6550 today.