A recent study by John Burns Real Estate Consulting reveals that the percentage of investment properties in Utah is lower than in the rest of the nation. Nationally, investors are buying 24% of homes. In Utah, however, 15% of homes are bought by investors.
Just because the percentage is low, it does not mean that Sandy, Utah is not an excellent location for buying an investment property. It's all about your investment strategy.
When you choose to buy an investment property, it is a big step and one that should be lucrative for you. However, if you are not careful, it could become a losing deal. You can maximize your profits if you do some research first!
Here are three amazing tips to help you choose a lucrative investment property.
1. Buy in the Best Location
It’s a pillar for any successful local business. Investment properties are no different. Before deciding where you wish to make a property investment, carefully research the following factors.
- Are there schools nearby, and do they have a good rating?
- What is the crime rate?
- Are there nearby amenities like public transportation, restaurants, parks, and supermarkets?
- Is the area experiencing economic development?
- Is it an excellent market to rent a property investment?
These factors are critical indicators of your success.
2. Consider a Single-Family Home Investment Property Over Multiple Units
If you are new to investment properties, this could seem odd. However, the upkeep for a single-family home will be much easier on you. There will be fewer incidents of wear and tear. Repairs will be consolidated.
Plus, it became a brilliant solution for investors during the housing market decline. It is much quicker to rent out a property than to wait for a buyer to flip it. Therefore, cash is immediate.
3. Crunch the Numbers Before Renting
An investment, by design, makes you money. Real estate should be more of a passive income that will not overcomplicate your aim. However, inexperienced investors can fall into the trap of not crunching the numbers before deciding.
Unless you have the cash, you likely need a loan to pay for the property. Investment property loans are not the same as traditional mortgages. The interest rate is higher for an investment property loan.
Before completing transactions such as borrowing a loan or signing a lease agreement, ensure the monthly rent will cover the mortgage cost. Consider the two percent rule. The monthly rent should be the same or higher than two percent of the price to purchase the property.
Investment Property in Sandy, UT
When you choose your lucrative investment property, there is one more smart decision you can make. Call Wolfnest to help you manage the property.
Managing investment properties can be tricky and time-consuming on your own. Wolfnest takes care of the tough stuff, leaving you to enjoy your day and profits. They have a narrow focus and unique skill set, helping first-time investors, accidental landlords, and professional landlords succeed.
When you are ready to be a real estate investor, call Wolfnest and rest easy!