Buying investment real estate in Los Angeles? While many factors influence the rental property market, be certain to take into consideration the following 5 ways to position yourself to score big in 2021 and get great cash flow from your investment property.
Planning for Success
Every successful journey begins with a detailed roadmap, your investment strategy. Your real estate investment options should be based on your rental income goals and how the investment property affects your long term passive income stream. Look at , income taxes, prospective tenants, closing costs). As real estate investors, we are all looking for good positive cash flow! When buying investment real estate in Los Angeles, laying out a complete plan is an excellent way to position yourself to score big in 2021. Not only does this include your initial phase, like identifying the type of property, apartments, office buildings, single-family, fixer-upper, or ready to rent, but you should also pre-plan for your exit strategy.
In real estate, an exit strategy is designed for releasing the investment property at some point in time, whether it be in the near future, such as flipping or a buy and hold property, a long-term investment earning a rental income while building equity over time. While this may sound easy, there is a great deal of knowledge required to layout a successful budget for your rental property. Working with a professional buyer like Jennifer, a real estate investor, means you will be listened to when it comes to your individual questions and concerns about both your short term and long term objectives in rental property investing.
Running a business, which is truly what your rental property is, requires working within a budget and being acutely aware of your funds. It’s about cash flow, rental income, (insurance, repairs, and property taxes), mortgage payments, and unexpected costs. In addition to laying out your plan, you need to plan for all possibilities of owning and maintaining real estate, providing you the ability to easily handle any problem that may arise along the way. For instance, are you going to be the property manager or are you going to outsource to a property management company? Do you like collecting rent payments?
The rate of return on your investment property is the bottom line, assessing the budget, and making sure your investment will make gains in returns is of primary importance. By working with a professional buyer like Jennifer Buys Houses you will be aware of all expenses, repairs and the timeline of any necessary work will be explained before you buy. Because you will know just what to expect and when, there won’t be any concern about being burdened with the surprise of sudden major expenses down the road. Making a budget based on realistic and complete data is a requirement if you want to position yourself to score big in 2021 for buying investment real estate in Los Angeles.
Buying investment real estate in Los Angeles based on relevant and reliable data is another way to position yourself to score big in 2021. It may take some time for you to get your credit (work on your credit score now) in order and to save for your initial down payment, your patience will pay off by making a higher down because you’ll pay less interest overall. Investments should not be jumped into due to an emotional feeling or hunch that a property is the right one for you! Far too many buyers end up holding regret and an ample supply of repair bills and other unpleasant financial realities, all of which could have been brought to light before the purchase by working with an expert. At Jennifer Buys Houses we are professionals who are here to answer any questions you may have about how to analyze investment properties.
Be Prepared to Buy
It is a requirement to have your financing in place for your real estate investment, even if you have all the funds in cash. That means having your initial investment-ready (tax returns, credit scores, and a great real estate agent, know the real estate market, know your budget and what type of rental income you seek, what you are able to afford in terms of a loan (funds for a down payment, like from stock market, retirement savings, cash-out refinance of your primary residence, mutual funds) and a clear focus on the type of real estate investment that is best suited to your individual circumstances. You can position yourself to score big in 2021 by not hesitating when the right deal shows up when you are buying investment real estate in Los Angeles. Understandably, fearing taking the risk of purchasing a property without feeling confident that you are getting a great deal will make buyers hesitate.
This is one of the main reasons many investors choose to work with professionals who know their way around the market. By working with Jennifer Buys Houses you can avoid the risks that overwhelm newcomers and benefit from their insider knowledge, grabbing a real bargain up off of the market just as soon as it becomes available. It’s always good to network with real estate agents and property managers, too. Add to your team!
Work With a Professional Property Buyer
Buying investment real estate in Los Angeles? A professional buyer’s purpose is to help people solve problems while revitalizing single-family homes and giving back to the community (fixer-uppers that become completely remodeled raise the price in the neighborhood). Professional buyers can save you both time and money, being extremely familiar with the warning signs of poor investments. Jennifer Buys Houses makes real estate investing a smooth and simple process.
We can guide you through getting your finances in order so that you are in the best position to earn the highest return on your investment dollar as soon as possible. Working with a professional property buyer like Jennifer Buys Houses is the best way to position yourself to score big in 2021. Why not let an expert help you lay out a plan and offer guidance. Helping you realize your vision of real estate investing is our job. At Jennifer Buys Houses we do the legwork to find the best properties for you!
Send us a message or give us a call to learn more about what we can offer you!