The new COVID-19 pandemic has changed every sector including real estate investment. Because of the stringent policies levied on investors and agents, they face several challenges. That does not mean it’s impossible to buy an investment property right now. Property investors have reasonable odds of earning profits in the short and long term with the following tips.
Get a Mortgage with Low Rates
Before you look for a rental property for sale, get pre-approved for a mortgage to get a better idea of what you can spend for a property. Rental property mortgages are at an all-time low and should you apply, you will quickly get an inexpensive mortgage loan.
Think About Investing in Smaller Towns
Small, isolated cities could be the ideal places for investments. The spread of COVID-19 has affected major cities disproportionately, while smaller towns did not feel much of an impact.
Small towns are less connected to the global economy. Look for alternatives in these towns where prices are more reasonably priced, and rents have dropped a little.
Look for Anxious Home Sellers
Many property owners still need to sell their homes quickly even during a pandemic. They have a small range of home buyers to sell. But most buyers are hesitating to purchase now in the face of uncertainty, which means the sellers are now more desperate to sell their properties.
If you intend to purchase an investment property, you can reach out to one of these sellers and score a good deal.
Connect with Your Network
Another way to search for properties is to contact your relatives, friends, or anyone else who sells their properties. If you find the right property, home sellers can agree to a much lower price.
Look at Real Estate Listing Websites
Even though you cannot visit properties in person, you can tour them on real estate websites. Many websites have detailed real estate listings, neighborhood information, professional photographs, virtual tours, and even rental property analyses.
Evaluate Possible Real Estate Deals
Before making an offer, analyze the investment property based on real estate data. Rental income, expenditures, cash on cash return, cap rate (if you pay with cash), and occupancy rates ultimately affect the average return on investment.
Work with a Trusted Advisor
Real estate agents and financial advisors are professionals with lots of connections and an abundance of resources available.
You need not worry about having to go out and tour when you can rely on a real estate agent or financial advisor.
Working with an advisor is one of the safest ways to get the process going as an investor in real estate.
Follow the tips above for a profitable 2020 and beyond now that you better understand what you should look forward to searching for your first investment property. Contact Pinetree Financial Group today to get a real estate investment property loans for your first investment property.