Spring is a great time for growth. Whether it be flowers, vegetables, trees, and anything else in your yard. So, with that in mind let’s talk about growing something we are interested in growing…money! And, I don’t mean a money tree. Historically, the greatest asset we each have is our homes. We buy the house at a reasonable price, have a safe place to live, and let the value grow over time. Homeownership is a part of the American dream and the biggest predictor of a person’s net worth.
But today, we are not just going to talk about our own personal homes. I want to talk about growing your money through real estate investing. Just like your personal home you can grow wealth by investing in rental properties or flipping houses. Over my career I have helped a lot of investors purchase homes in Northeast Florida. With an investment property you are looking for different things in a house. Instead of having the perfect curb appeal, you might be looking for a home close to public transit. Or, instead of having the perfect layout a home that is easy to maintain like a concrete block home would be best.
And, most importantly finding the home that returns the most amount of money. For a rental property I conduct a detailed analysis of your initial investment and return over time. The goal is to see the investment as a percent return so you can evaluate it over other investment options such as stocks. When considering a property to flip though we look at different criteria. You are evaluating the purchase price plus repairs and carrying costs. Then making the crucial determination of a future sales price (ARV, or after repaired value) to make sure you can turn a profit once you sell the home.
All of this takes great effort and knowledge. Not just financial knowledge but also in-depth market knowledge. Knowing what areas you feel comfortable holding a rental long-term in can vary street by street. And when finding a flip, knowing what upgrades to do can make or break a deal. That’s why it is always important to consult with a professional Realtor who knows the market in and out.
So this spring consider growing your wealth with a smart real estate investment!