Real estate investing has been a hot topic for many years, even during the housing crisis of the past half decade. Are you interested in taking a leap into this investment opportunity? Use this quick guide to learn how to make the most of your real estate investment experience with properties in the Dallas area this year.
Know Your Budget
Real estate investing is far more complicated than simply buying an income-earning property. Before you go out to tour available properties, either residential or commercial, use this checklist to help develop your budget.
- What’s the maximum amount of money you have to invest, including any loans procured?
- Do you intend to buy a property to “flip” (fix up and sell) or to use to generate ongoing rental income?
- How much renovating or maintenance work will you take on yourself instead of subcontracting out?
Once you’ve answered these questions, you can work with your real estate agent to find the best properties to suit your budget. And check out the calculator on the GoodMortgage website to determine the financials of a property you purchase and then rent out.
Know Your Neighborhoods
Are you interested in investing in an established neighborhood, a newer development, or a revitalization area? The answer to that question can impact your ability to realize a return on your investment dollars.
The good news for the Dallas area is that it’s continuing to grow by leaps and bounds compared to other large metropolitan cities in the country. This means that you will see a lot of opportunities on the local real estate market for your investment dollars.
Good investment opportunities may be homes sold by the U.S. Department of Housing and Urban Development. Spend time researching properties through the HUD site, then discuss with your real estate agent what may be your best investment opportunity might be.
Know Your Limits
This goes hand-in-hand with knowing your budget and neighborhoods. Is your expectation that you’ll reinvest any real estate income into purchasing additional properties? Or do you simply want one or two lots to help support your other monthly income?
If your intent is to grow your real estate portfolio, check out the Dallas/Fort Worth Real Estate Investors group. On this site, you can read local investment tips and connect with other investors. This can be especially helpful if you’re brand-new to real estate investment. Here, you can learn about local properties that you can buy at auction, how to stretch your borrowed money, and where you can find ways to increase your return your real estate investing dollars.
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