If you're thinking about investing in a rental property, experts say low home prices combined with low interest rates make this the best time in years to become a real-estate investor.
While the timing may be right, these five tips can help first-time investors take advantage of what might be the opportunity of a lifetime:
- First-time investors should find a real-estate agent experienced in investment property deals who can help you locate promising properties.
- Since not all investment properties are the same, it's important to determine what type of property fits your strategy.
- location is key. Homes in high-rent or highly populated areas are ideal; stay away from rural areas where there are fewer people and a small pool of potential renters.
- Speak to potential lenders or even a financial planner about whether you have enough assets to handle the ups and downs that could come with investing.
- Build a supporting cast. You may want to have relationships with a property management firm to handle the day-to-day rental affairs, an accountant to help you understand the tax laws. The more support you have, the more successful you will be.