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You don’t get a map with real estate investment, which means the road to riches is a winding one. However, this doesn’t mean that you cannot stick to the right path and improve your chances of success. A great place to start is to listen to successful investors and real estate investors like Asaf Izhak Rubin. As they speak from experience, they can give you the right guidance for making an investment in real estate.
Let’s check out some of the tips:
– Look for rental properties in emerging neighborhoods
According to Asaf Izhak Rubin, one of the best ways to get involved in real estate is rental properties. You can find growth potential in emerging neighborhoods, along with tax incentives. You will be able to maximize your profits and the income will also cover your costs.
– Don’t forget to diversify
Most people believe that the best real estate investments are the ones in your backyard. Yes, you need to have knowledge of the area you are investing in, but Asaf Izhak Rubin says that you will limit your potential if you only stick to a small geographic area.
Consider other cities and states for making real estate investments to spread them across a large geographic area, which can diversify your investment and keep you safe from volatility in the local markets.
– No over-rehabbing
When you are buying investing properties, you don’t to go overboard during rehabbing. You want a nice and modern look, but this doesn’t mean getting the most high-end fixtures and countertops. Learn to budget because it is not a magazine shoot and you can find something middle-of-the-road.
– Consider single family rentals
If you want to attract the right tenant, Asaf Izhak Rubin says that you cannot go wrong with single family rentals. Lots of people want to live in a house, but some don’t want to own one, while others cannot afford it. The single family rental will always appreciate and last for a long time as well.
– Don’t overleverage
Mortgaging every rental to the hilt is not a smart move. You can be successful and still manage to go broke because of the mortgage. Therefore, real estate experts like Asaf Izhak Rubin suggest that you finance some of your rentals and keep some clear and free, as this will give you a good mix of safety and also stretch your resources.
– Deal with maintenance issues right away
Regular maintenance is essential where your real estate investment is concerned. If you don’t nip any issues in the bud, they can become larger over time and lead to a major expense. Thus, talk to the renter and ask them if anything requires fixing. It is also a good idea to check for water damage under the sink and around the toilet. You can save a lot of money if you find water leaks before they get bigger.
– Get to know the market
As per Asaf Izhak Rubin, you need to learn about your selected market and become an expert in it for making smart real estate investments. This means keeping up with the current trends, which involves any decrease or increase in interest rates, average rent and even crime/employment rates will help you recognize the market status and make plans for the future. You have to stay one step ahead of the market to see the payoff from your investment.
-Expect vacancies
When it comes to rentals, Asaf Izhak Rubin says that you need to be prepared for vacancies. It will gouge a hole in your cash flow, which is a concern, unless you have deep pockets. Make sure you factor in the losses before you invest, as this will help you stay prepared when you are unable to rent the property right away. This can mean a loss in revenue between 2% and 10%, as not all months in a year might produce an income.
