Buying Your First Investment Property
Are you ready for your first investment property, but aren’t sure where to start? Chicago is home to many real estate investment opportunities. Before you start you search here is what you need to know.
- The Numbers- Investing is all about the numbers and your return on investment (ROI) is what will make your purchase a success or a flop. Know what percentage of return you need to yield to pay for your property’s expenses and have some money left over. Many rental property investors look to make 6% or higher annually.
- What Makes a Good Investment- Your rental property needs to be in a location where it is a hot commodity. As the saying goes “Location, location, location.” The last thing you need is to be surrounded by an overload of competition. You want your property to appreciate over time and although you can’t control the real estate market you can pick the right location and set it apart with amenities that others don’t have.
- Where to Buy- There are a number of buying options to consider when you’re looking for a real estate deal that you can make money on. If you’re interested in rehabbing a home then foreclosures, for sale by owners and property auctions are good places for you to start your search. You can also consider contacting a real estate solutions company who will have their own database of properties ready (or soon to be ready) as a rental investment.
- Who to Consult With- Your first rental property can be intimidating which is a good reason to take advantage of companies willing to consult with you. Realtors are able to help you find a property in the right location and in your price range while real estate solutions companies can show you their rehabbed listings.