So, you've heard that investing in real estate can make you a solid income. You may be ready to dive in head first, but doing so comes with risks.
Without an understanding of the Littleton, Colorado market and real estate in general, you risk facing common mistakes. These mistakes can affect your new business and cost you more money than you make.
This guide aims to help you avoid these property investing problems. Keep reading to learn them.
Buying the Cheapest Property
Sometimes, a real estate deal is too good to be true. Finding a cheap property often means putting a lot of work in to fix it up and start making rental income. Unless you are a fix and flipper, don't buy a property with a lot of problems.
Properties advertised "as is" or in need of a little fixing should be avoided. However, you can always take a look at the property to create an opinion for yourself.
A property costs a lot of money, and major renovations and repairs add to that. Maintenance expenses add up, and your "good deal" is no longer a deal at all.
Not Creating a Budget
Complete market research of Littleton, Colorado real estate to create a budget that makes sense for the area. Rental properties can range in price depending on the size, condition, and surrounding amenities.
Make sure the property you are looking at is worth your money. A rental property management company can help you create a balanced portfolio with a free rental analysis.
A rental analysis will determine whether the property will make you money. If you don't see the returns you want for the money you spend, don't invest.
Investing in Bad Neighborhoods
Littleton has 61 associated neighborhoods but not all of them are created equal. A declining area that needs work is not a great location to invest in. Potential renters are going to be looking for up-and-coming neighborhoods.
Before making an investment, analyze the following about a neighborhood:
- Crime rate
- School ratings
- Unemployment rate
- Property value trends
An area with increasing rental rates usually means the location is booming with opportunity.
Investing Without Help
Property investing as a beginner requires a lot of learning. It's common not to know everything.
Newbies often make the mistake of investing in properties alone because they believe they'll maximize their income.
Hiring a property management company is worth the fees and local knowledge provided. Additionally, they can help maximize your income and avoid common investment mistakes.
Ready to Start Property Investing?
To do property investing right, you need to avoid these common mistakes. The best way to do that is by hiring a full-service rental property management company.
PMI Little Town is your go-to service in Littleton, Colorado. We provide investors new and seasoned with residential and commercial management services.
With over 20 years of local experience, we've found the key to success is providing prompt, friendly, and professional services. We know that real estate investments are important for your future.
Let's get started. Get a free rental analysis from us today.
