Updated over 2 years ago on . Most recent reply
Seasoned Investor Rules
My husband and I have been investing in real estate since 2011. I'm a full-time agent and worked my way up the ranks to now head up the STR department of my broker's property management division. You name it, we've done it:
- Fix n' Flips
- Long-term rentals
- Short-term rentals
- Mid-term rentals and
- Arbitrage (not recommended for novices).
I thought I'd share some lessons from the school of hard knocks. It's not an all-encompassing list just some things that come to mind. My hope is that taking some of them on board as you venture into real estate investing, will save you a lot of hassle and headache down the road.
1. Never negotiate from a losing position. Don't every pay more than the property is worth.
2. Emotions have NO PLACE in your purchasing decisions. It's not your residence, you're not living there, it's just business. Don't let emotions cloud your judgement.
3. Don't get fixated on one property. Always be ready and willing to walk away. There's always another property and deal down the road. More often than not, the next property you come across is better than the last.
4. Start small, and learn new skills each time. The more you can learn to do yourself today, the more money you will save tomorrow. Youtube is a fantastic resource.
5. Always have the right tools on hand to do the job. Time is money.
6. When furnishing a short-term rental (STR), know what type of guests you are aiming for. The furnishings should match your guests' expectations.
7. Aim for a higher end look and feel. Choose neutral colors and design a feature wall in the living area. Your goal is to provide comfort and space they won't find in a hotel. After a while, you'll get really good at finding deals on furnishings.
8. Townhouses and condos make great STRs. Be sure there are no HOA restrictions and check local permits.
9. Properties within 10 miles of a hospital or university are good mid-term rentals (30+ days). There are loads of traveling nurses across the nation. Check out Furnish Finders.
10. Before purchasing, take note of other properties in surrounding neighborhoods because your flip will be competing with them. Ask your agent to send you a few recently sold homes that sold in less than 30 days. Take note of the interior photos, features, finishes, etc.
11. Choose professional photos using wide-angle lenses and lots of light.
11. Do your research! Find out how much you can sell for, rent for? Long-term, or short-term income?
12. Use a profit calculator to keep track of your expenses and stay on track with your budget. Message me for recommendations.