The Do's and Don'ts for Investing in Real Estate
Are you thinking about investing in real estate in 2021? It may be the perfect year to
purchase a rental property, a vacation home (licensed in NC too remember ��), or to flip
houses. I’ve put together this list of tips to help you get the best return on your
First, consider what type of investment property is best for you. If you are thinking about
a rental property, such as a vacation condo or rental home, consider how much time will
be needed for things like maintenance, managing a website or rental listings, and
vetting potential tenants*. For rental homes, make sure the areas you are searching are
attractive to tenants in terms of proximity to nearby business centers and transportation
hubs, and in good school districts for family tenants. *If not using a management
Is a family vacation property more to your liking? Make sure you read all rules pertaining
to owners and guests, as well as rules on renting your property out when you are not
using it, if that is something you plan to do. Also be sure that your vacation property is
somewhere you foresee your family wanting to travel to often enough to make it
For new house flippers, you want to find out what return you can expect to get in your
market area and talk to contractors and suppliers to get realistic estimates on
renovations, both in terms of price and time to completion.
Here are some additional Do’s and Don’ts for investing in real estate:
Do aim for at least a 15% return on investment.
Do look for homes priced in the low end of the median price range.
Do look for 3-bedroom, 2-bath single family homes for rentals or flipping.
Do focus on one neighborhood or area.
Do purchase rental properties close to your home if you plan to manage them yourself.
Do use one real estate agent to help with all your buying and selling needs (um that`d
Don’t purchase a second property until the first is earning revenue.
Don’t buy properties that you wouldn’t want to manage, even if you plan to use a
Don’t buy a home that you cannot afford to carry for several months in case of a slow
Don’t buy a home or condo without having inspections performed.
Don’t buy without title insurance.
Don’t buy more properties than you are able to manage.
Sometimes buyers make the mistake of searching on their own and contacting the
sellers or listing agents directly. Working with several different people wastes your time
and increases the chances that you will miss out on a deal.
Also, working with one agent allows that agent to learn your tastes, needs, and parameters, so I can be out looking for the right property while you are busy doing other things.