If you are thinking about creative ways to increase your investments, enhance both short and long term income opportunities, and reap some lucrative tax benefits; ownership of real estate rental properties could be just the thing for your retirement portfolio! Providing of course, you are willing to do your homework. From the moment you decide to invest to the actual moment you sign on the dotted line to complete your purchase, there is a tremendous amount of work that needs to be accomplished. While the process may appear daunting at first, the benefits can be great. One of your best sources for purchasing property is through real estate auctions. The knowledgeable experts at Central Texas Auction Services are available to guide and educate your to a successful transaction.
Real Estate Purchasing Process from Start to Finish
The first rule to being successful in the real estate market is the purchasing process so take the time to do the research by creating a checklist of the following five easy steps.
• Purchasing at the right price: finding a piece of property at a bargain price will serve you well in the future providing you have a full understanding of surrounding property values. Keep a tab on rental prices for properties that are comparable to the one you are contemplating purchasing. Be sure to calculate the cost of utilities into the final sum if you are planning on including them in the rental price. Make sure that you include enough of a buffer between income and costs. Ideally, your goal should be a profit of $500.00 per month in favor of income over your monthly outlay.
• Selecting the right neighborhood: choosing the right area can be tricky so it’s important to find a neighborhood that falls somewhere in the middle of high end and low end. A good place to start is a working class neighborhood containing both middle and lower income families with nearby shops and businesses. Choose a property that is visually appealing and comparable to other properties close by but plan on doing some upkeep to show existing and future tenants that you are committed to the property and are a good landlord.
• Select property with simple construction: it is often said that beauty is in the eye of the beholder and while you may want to gravitate towards a period style residence with stained glass windows and an intricate roof, repairs can be incredibly expensive literally cutting chunks out of your profit margin. A house or apartment with simple, solid, reliable construction with easy upkeep and repairs is a much more lucrative investment option. Some areas to consider when evaluating property for future investment include accessibility to heating, plumbing and electrical systems. A panel behind the bath for example allows easy access in case of any issues. In contrast, a bath that joins up with the bathroom in the adjacent unit may require an entire wall to be removed before it can be repaired.
• Consider purchasing property close to home: thirty minutes or so away from your primary residence is ideal because it will allow you to be involved and respond quickly should the need arise but is far enough away that you can relax and reap the benefits for your future retirement.
• When selecting investment property, bigger does not always make it better: the size and square footage of the property you are thinking about purchasing will determine your final tax rate. Interestingly enough, the size of the room doesn’t necessary have a factor in rental prices as 4 bedrooms that are medium in size will often give you a higher rental revenue than 3 larger sized bedrooms.
Buying & Selling Investment Rental Properties in Belton, Killeen, Temple & Central Texas
If you are interested in learning more about bidding and purchasing property in Central Texas at auction, contact the experienced auctioneers, consultants and real estate experts at Central Texas Auction Services today or browse our upcoming auction events.