If you have the right help and knowledge, investing in real estate can become very simple. In this blog post we will discuss how you can get started with real estate investments in Reno Nevada.
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Your First Investment
This is for people who are renting. It wouldn’t make sense to get start investing if you are paying rent. So the first thing you want to do when you are getting started in real estate investments, is to get your own home. Why throw money away renting when you could invest in your own home and grow equity?
If you already own a house, great. If not, buy a house and start updating it if necessary. It doesn’t have to be a perfect for you. Remember you will want to move onto the the next property and rent this one. So make the necessary updates and do not got over board.
Proper Financial Management
Having the proper financing in place is extremely important. Many investors us creative financing to fund their deals so you do not have to have the cash to get started. You have to work on getting your finances in order. So you are able to buy the investment property when you find it.
There are many loan programs available that a investor friendly. They are also programs for first time home buyers with a lower down payment. Speak with a lender to discuss your options. You can also get a hard money loan. Just remember, if you get a hard money loan, you will need to read the fine print. Hard money loans have higher interest rates and strict terms and conditions.
After you know how much you qualify for, it’s time to start locating investment properties.
It is important to do research on your first and successive Reno real estate investments. Make sure the neighborhood is in demand; this will help you find renters when you’re ready. Check out the schools, entertainment, access to shopping and groceries. You will want to make sure you choose an investment that would work for multiple family types. This will give you the best chance to find a good renter in the future.
Also, check into each available property. Check that the taxes are paid, check the zoning, verify if the property is in a property owners association, this will cost you over time and eat into your rental profits. Make sure you conduct an inspection of the house you are interested in, most lenders will require this anyway. You want to make sure you pick a house with a good structure, a comfortable floor plan, and some curb appeal.
Begin Investment Cycle
Once you have purchased your first house and moved in, keep on top of your payments and find ways to make extra money. Pay off your house as soon as you can. The more principal you pay on top of your minimum monthly payment, the faster the loan will decrease and you will pay less interest over time. Once your home is paid off, it is time to look for your next Reno area investment.
Buying Your Second Investment
Now that you are only paying homeowner’s insurance and utilities, you will have a lot more money to save up for your next down payment. You will not qualify for the same first time home buyers loan, so you will have to come up with at least 20% of the purchase price of your next investment. Once you have the down payment and are qualified for the loan, you can research and purchase your next investment. You can now rent that home, or move into it, depending on how you feel about your first home. Make sure you charge enough rent to cover the payments and continue to pay off large chunks of the loan principal. And this is how anyone can get started with Reno Nevada real estate investment. You get to the point where your rental income pays for the investment. Save up more money for the next down payment, become qualified for the loan, purchase the next one, and so on and so on. Now you have a portfolio of homes that are paying for themselves, and you will have residual income.