“The investment opportunities that we see today are just the beginning. The tidal wave has just started to hit the beach,” said Michael Covarrubias, chairman and CEO of TMG Partners real estate. He told a group of 140 investors in San Francisco, “The key to the real estate business is, and always will be, timing.” The best income properties right now are foreclosure homes and apartment complexes. The retail/commercial market frightens many real estate pros, but it’s expected to rebound eventually as consumer confidence grows and people start spending again. In general, there are a number of different opportunities for people interested in buying investment property.
Ranches for sale are popular income properties because many American vacationers want to “just get away from it all.” Some individuals want a truly relaxing, “all-American” vacation not too far from home but well beyond work stresses and responsibilities. A rural western experience is similar to cottage country in that there are no neighbors, no slicked up tanned college students partying and no noisy, congested traffic. When you’re looking at ranch buildings for sale, try to find a place that has luxurious fixings inside the building but still offers some of that good old country tradition. You can have cattle, sheep, horses or border collies on the property. You can have a spa, golf course, tennis court or fitness center nearby or on the property as well. Scenic nature and good hiking trails should also be a consideration in selecting the right location. Some of the best places for your western real estate investment property include Buffalo, Wyoming, Clark, Colorado and Bigfork, Montana.
You’ll see a lot of foreclosure income properties available right now too, but how do you know what’s a good deal and what’s a risky deal? According to Todd Beitler, owner of the Real Estate Library in Boca Raton, Florida, it’s about location, first and foremost. “If somebody spends 10 hours a week for five weeks to do research, it’s worth it,” he says. Secondly, it’s about mitigating real estate investment property risk, which Beitler says should involve buying bank foreclosure properties, rather than for-sale-by-owner foreclosures. He explains, “There’s no risk. There are no taxes, no liens, no tenants to evict.” If you plan to use the home as a rental property, then you will probably need to put 10% down.
For the first-time investor, the best income properties are usually simple, single-family residences that are rented out to tenants. Unlike the flipping houses scheme, this type of investment is intended to deliver a steady stream of income, rather than a quick lump sum. In the long run, you can make more money, although there will also be more expenses as far as repairs and grounds maintenance are concerned. Look for places with appreciation that are near bus stops, grocery stores, entertainment, jobs, schools and other amenities. Before making a purchase, view the property first, rather than investing in far-off overseas property that could be more of a gamble.
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