Is Now A Good Time To Buy Residential Income Property?

Buying residential income property (from duplexes to apartment buildings and large complexes) has traditionally been a good idea for investment purposes. Many savvy investors have chosen this route to invest their money and it has paid off.

Despite the fact that the real estate industry as a whole is also feeling the strain of the mortgage crisis, now may be the right time for you to consider your entree into investment property, or even expanding your current portfolio. Just like home values, apartment buildings and complexes have also dropped in price, and that means there are some great deals to be had for the right investor.

With so many people falling victim to homes foreclosures, there has been--and will soon be more of an influx of people who need a place to rent, and still have a decent income. These people will need to be carefully screened, and their credit may be hurt, but they may make very good tenants still. Be sure to vet these people fairly, taking into account that they many have filed bankruptcy, (wiping out most of their unpaid debt), which would give them the ability to pay rent and start over rebuilding their credit. These people may be not your typical renters and a good tenant screening process will pay off here!

As you know - there are risks with any investment, and buying rental properties is no different. However, there are still good reasons to take that risk. With a well managed property purchased conservatively, rental income will help pay the monthly mortgage on the property, and temporary short-falls due to maintenance or occupancy, can be make up with good management. Property investment is not for the weak of heart, but it can, and has produced positive results time and time again.

A word of caution: It is important that you do not get caught in the same situation that caused the real estate crisis we are in. Too many people purchased properties that had over-inflated values. Be sure to carefully research any property you consider including the property value, the location, and the comps, and make a significant downpayment so that you can guard against a month or two of lower income from your unit(s) should this happen. Remember to insure against the risks.

So, now really is a great time to buy -- but you have to make sure you get the best property for you. Do not over-extend yourself, make a significant downpayment, and choose a property that will pay off, (does not need major repairs, is in a desirable location, etc.)

If you need assistance finding a great residential investment property in the Carolinas, or have any questions of property investment of property management, please go to our website at http://www.kuester.com.

How to Find A Good Investment Property

There are a lot of properties out there right now, and if you have the opportunity to purchase a great investment, now is a wonderful time to buy.

However, if you really want to get the best deal on investment properties, you have to increase your odds of finding the best one--one that will be a money maker! Do you really want that GREAT investment property? Then you are going to have to be vigilant—check your resources and keep your eyes and ears open! Looking through the MLS listings is not enough any more. Here are ten ways you can increase your chances of getting the best deals:

1. Tell people what you are looking for. Let the right people know what you are looking for and let them help you find the properties. There are a lot of owners out there who want to sell, but haven't yet listed their property -- and they may mention it to friends or families. You could catch one of these great deals ahead of time!

2. Go online. Go to a search engine and enter the type of real estate you are looking for, in the appropriate city. Sometimes you can get a good opportunity here -- and other times not, but this is a great place for a first step.

3. FSBO sometimes pays off. Drive around looking for "For Sale By Owner" signs. Owners often don't want to pay to keep the ad in the paper every week, so you won't see all properties there. A FSBO sign might mean a great price for you, and a seller who will be eager to sell.

4. Look for abandoned properties. An abandoned property means that the owner doesn't want to deal with the property, or can't for whatever reason, and may sell cheap.

5. Look at "For Rent" ads. Save newspapers or look at old craigslist ads that are a few weeks old. If the rental unit was not rented, the landlord might be ready to sell.

6. Bankers are great friends! Bankers are in the know and you might get a lead on a foreclosed-on investment property, and get it cheaper if you buy it before it's listed with a real estate agent.

7. Pay for leads. There are people that always seem to hear about the good deals - so offer them a finding fee!

8. Take advantage of eviction notices. Many local papers publish eviction notices,and sometime this information isinformation at the courthouse. A landlord who just went through evicting tenants may be ready to sell.

9. Advertise. Place your own "Looking for investment properties to buy," ad on Craigslist, or on a sign, or the newspaper.

10. Call Kuester! (888.600.5044). We will work with you to find the perfect property for you!