Buying your first investment property is a big deal to every house investor. However, the process of buying your first property requires a lot of attention. As a house investor, you may ask yourself: “Am I ready for buying my first property?”, “How to proceed with buying my first property?” as well as “What are the steps to take before buying my first property?” This can certainly feel overwhelming. Nevertheless, we can provide you with an answer to each of these questions. You can use this blog as the basis towards buying your first investment property. We provide you with the first investment property advice you need to know. We will go over the necessary steps every first time home buyer for investment property should take. After exploring our real estate investment tips, you should have understood how to get your first investment property. So, let’s not lose more time and start with the first investment property advice you need prior to buying investment property.
#1 Buying Your First Investment Property: Real Estate Education
The first investment property advice is in regards to real estate education. As a beginner house investor, you might think that you need to hire a real estate agent in order to find the best first investment. The truth is that you really do not need a real estate agent. Sure enough, a real estate agent has a lot of knowledge in the field and can be extremely helpful when buying investment property. However, a first time home buyer for investment property can find the best first investment himself/ herself. All you need is real estate education.
But do not get scared. You can learn everything you need to know if you are persistent and put effort in the process. You can easily access various real estate articles, blogs, and books online to help you out. In addition, there are many available online courses you can take part in. This way you will be fully prepared for buying your first investment property. Moreover, you will know how to find and manage the best first investment. If you want to get more detailed information on the topic, make sure to read “What’s the Real Estate Education You Need to Start an Investment Business?”
#2 Buying Your First Investment Property: How to Get Your First Investment Property
Investment property financing is one of the major steps when buying your first investment property. I bet you are probably wondering how to get your first investment property and how to figure out the investment property financing. To be honest, financing rental properties is not always easy. Beginner real estate investors might face a serious challenge when trying to figure out their investment property financing. However, there are a couple of real estate investment tips we can give you here. When considering a way of financing rental properties think of the mortgage loan as well as well as real estate partnerships.
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Mortgage
When buying your first investment property, it is understandable that you do not have all the money to be financing rental properties. That is why an option for the first time home buyer for investment property is the mortgage. This type of loan is given by banks when you place the property as a guarantee for paying back the money and the interest rate. In order to take a mortgage loan for buying your first property, you need to typically pay around 20% of the property price as down payment. As you can imagine, that is still quite a lot of money. That is why you can turn to your real estate investment network for help. Here is how that works out.
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Real Estate Partnerships
There is a way you can use your real estate investment network when buying your first investment property. First of all, you can turn to these people for advice on buying investment property. What’s more, you can enter real estate partnerships. This means that you will be buying your first property together with another person or people. As you can imagine, this way the financial assets needed will be divided between all of you, thus, it will be easier to proceed with the investment.
However, as a beginner, you might not have a strongly built real estate investment network and still decide to enter a partnership with another person. It is advisable that you trust the person you purchase a property with. Moreover, it is important that the other person is as passionate and involved in the process as you are. Otherwise, you take on risk when buying investment property in a partnership.
#3 Buying Your First Investment Property: Real Estate Market Analysis and Real Estate Investment Tools
Performing real estate market analysis before buying your first investment property is one of the most important real estate investment tips we can give you. Of course, conducting real estate market analysis manually takes a long time. Additionally, it involves the risk of making a mistake and receiving biased results. Luckily, there are real estate investment tools you can use to help you with the research. There are two most popular and useful real estate investment tools. The first one is the investment property calculator, also known as rental property calculator. The second one is a heatmap. Mashvisor offers both of these tools, so let’s review Mashvisor’s rental property calculator and Mashvisor’s heatmap.
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Mashvisor’s Investment Property Calculator
Mashvisor’s investment property calculator is a great tool not only when buying your first investment property but any property. The tool computes various real estate metrics such as cap rate, cash on cash return, potential rental income, etc. Additionally, Mashvisor’ rental property calculator will provide you with detailed information about the property and its surrounding area. Last but not least, the tool will suggest the optimal rental strategy for your investment, which is key to your success. If you want to learn more about the tool, you can check out “Investment Property Calculator for Analyzing Real Estate Investments.”
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Mashvisor’s Heatmap
Mashvisor’s heatmap is another awesome tool for real estate investing. The map will present you with different neighborhoods and cities on the basis of their performance. Besides the numbers, a color scheme will help you in finding the best investments. The green color symbolizes higher than the average performance. The orange one shows average results. While the red one presents poor, or below the average, performance.
Further, you will be able to see the properties based on their market value. In this case, the green presents expensive and luxurious properties, the orange- averagely priced ones and the red- relatively inexpensive investments. This way you can easily choose properties that are consistent with your budget and not waste time on other ones. If you want to learn more, make sure to read “How to Find the Best Investment Properties Using a Heatmap”.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.