Low home prices and interest rates make now an ideal time to invest in real estate. Investors have several options for earning income with real estate. Find an agent who specializes in investment property to help you get started.
Determine your investment goals
Are you looking to make a one-time sale that yields a one-time return? Or, do you want steady income that renters provide?
Set a budget and stick to it
Many people who buy a property to flip it for a profit can underestimate the time, cost and their own skill level. Tell your agent and lender if you're flipping the property to keep your investment from becoming a money pit.
Pick a prime location
Carefully consider location when making your purchase. Renters typically want a home in a safe neighborhood that is near local attractions, and has multiple bedrooms and bathrooms. Highly populated neighborhoods will be more popular with renters than rural areas.
Find reliable resources
If you don't plan to tackle a renovation or ongoing maintenance yourself, find a trusted and competent person or company to do the work. You might also need an attorney to handle closing or tenant issues, a property manager to handle day-to-day rental duties, and an accountant to help you navigate the tax implications of investing. The support team you build will be invaluable if you are making a long-term investment.