Purchasing investment properties is a great way to build wealth and increase your monthly cash flow. When investing in real estate, the goal is to put money to work today and allow it to increase so that you have more money in the future.
So, how can you be successful in real estate investments? Here are a few tips for beginners.
Making Money By Investing in Real Estate
There are several ways to increase your wealth when investing in real estate. While a little riskier than investing for cash flow income, real estate appreciation is definitely a great way to build wealth.
Here’s What to Research
You’ll want to research the market trends and zoning in the area you’re targeting. What has been the property appreciation rate over the past few years? What changes, if any, are being planned by the zoning board?
Always study the neighborhood you’re thinking of investing in. Take a look at the crime rates, traffic, and school ratings. Think of all the factors you would want in your neighborhood. These are the very same things others look for when searching for rental houses.
Cash Flow Investment Properties
Storage units, car washes, apartment buildings, office buildings, and rental houses are the types of investment properties that will generate cash flow. But watch out for properties in certain locations where prices are lower. If prices are low, there’s usually a reason.
Low demand will be reflected in a lower sales price and a higher number of days on the market.
If you’re thinking of investing in real estate to build wealth, our Peoples Bank Home Loan Center’s lenders will be happy to walk you through the process and help you decide your plan of action.
Come by our 82nd Street location and speak with a lender, or give us a call us to make an appointment!