The global real estate market is projected to be worth $4,630 Billion by 2028. This means real estate investing could be a real opportunity. With that said, there are some common pitfalls you'll need to avoid.
So what do you need to know before you get into real estate investment? This article lists four tips for your consideration.
1. Decide if You Can Make It as a Landlord
The first thing you'll need to establish is whether or not you can make it as a landlord. Being a landlord is about much more than simply owning property and collecting a monthly cheque.
You'll need to be available to your tenants 24/7. Being a landlord can also have certain restrictions about what you can do with your property. Of course, you can make things significantly easy by working with a tenant management service.
2. Address Your personal Debt First
Investing in property can be a rewarding but costly experience. Once you own the property, you'll be responsible for a wide variety of maintenance fees. Owning property is also an unpredictable business. You never know when you'll be hit with new and unexpected expenses.
For example, a storm could cause damage to your roof and need work. If you have a lot of personal debt, you might find that the financial burden of owning properties can quickly get out of hand. It makes a lot of sense to address your personal debts before you start investing in real estate.
3. Be Wary of "Fixer-upper" Properties
Another thing to bear in mind when investing in properties is that you should be careful of "fixer-upper" properties. Generally speaking, these kinds of real estate investments will cause you quite a lot of hassle.
The only reason you should ever consider investing in this kind of property is when you have the necessary DIY skills to handle the renovations yourself. You might also consider it if you have a personal relationship with a contractor who can help you to fix things up cheaply.
4. Know the Rental Laws
If you want to invest in and rent out property in the Harrisburg area, it's absolutely vital that you know the local rental laws. For example, you'll need to know about things like security deposits, lease requirements, and tenant rights.
The last thing you want to do is invest in a property only to find that your plans are illegal.
Make Sure You Get Into Real Estate Investing the Right Way
As you can see, there are a lot of things to consider if you want to get into real estate investing for the first time. The optimal way to start your real estate investment journey is to work with a professional management company.
Such a company can help to ensure your investment decisions are sound and legal. If you want to work with a great real estate investing company in the Harrisburg area, contact us today.
