Are You Ready to Start Investing in Real Estate?

One of the nation’s leaders in investing in rental properties, fix and flips, and short term rentals has launched a new program to assist beginners in purchasing their first property including a complimentary discount of 10% to any Lowe’s store for materials or appliances used for the purchase.

Where to do you Start when investing in Real Estate?

Vacation rentals(also known as short-term rentals for VRBO and Airbnb) are an excellent choice for investors looking for a property to vacation in along with earning cash flow on popular platforms like Airbnb and VRBO. You can earn more weekly than long-term rental investors do with 12-month leases typically. With the Coronavirus continuing to affect the hospitality and tourism industry, real estate investors should focus more on good cash flowing long term rental properties as a backup solution.

1-4 Unit Rentals – low rise one-to-four-unit rental properties which will be occupied by families or students. There is high demand for rental properties which are affordable in today’s market. These properties can be held for 30 years providing appreciation and cash flow for the investor.

Commercial – usually a 5 to 10 tenant small strip center occupied by local small businesses. Commercial buildings are evaluated based on the term of the leases, credit worthiness of the tenants, and the overall market CAP rate.

The Location – Where to invest?

Although many investors choose to where they live, it is a good idea to look at where the demand is and where unemployment is low. Yes, if you invest in a market you know, you will be familiar with the neighborhood, but it may not produce the best return on investment.

You will want to become familiar with what the growth rate is in the area, unemployment rate, market rent, taxes, insurance costs, disasters that can affect the property, tourism, crime rate, school zone, and other important factors. Another factor to consider before investing is if there are any restrictions around the property.

Other important Questions to ask:

– Is the state landlord or tenant friendly? 

– What are the laws and restrictions around rentals including seasonal, short term, and long term?

– What’s the walkability score like? 

– Are there other vacation rentals or rental properties around?

These types of questions will help you determine how easy renting out your subject property will be and what you can expect to earn in cash flow.

Expenses

Rental Properties come with a variety of expenses to consider including capex, renovations, insurance, taxes, utilities, and common maintenance. Not only do you need to consider property expenses but also financing expenses.

Finding the Financing

One of the most important tips in investing in real estate is finding the right partner to assist in the financing. At Capital Funding Financial, new investors receive up to 80% financing on their property even if they do not have a track record or any experience. The financing offered may be used to purchase or refinance any rental investment or commercial property.

Learn more at https://capitalfundingfinancial.com

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