So you’re thinking about investing in rental property. You’ve come to the right place! There’s no better time than now to begin investing, and the sooner you do, the more money you’ll make in the long run. From benefits to logistics, our team at Turnkey Properties is here to tell you how to start investing in property in Memphis or Little Rock.
Why should I invest in real estate?
Investing in real estate is a lucrative way to grow your wealth. Real estate is one of the safest ways to invest your money because property value increases as time goes on, putting more cash in your pocket over the long term. If you’re reading this, you may be wondering how investing in real estate can change your life. That’s why we’re here to give you the facts you need to become successful with Turnkey Properties by your side.
Create Passive Income: It may seem like passive income is all anyone is talking about these days, but it’s for a good reason. Creating a steady source of income without having to put in extra hours at your day job means you and your family will be more financially stable.
The cash flow that comes from investment properties includes the net income made after your mortgage and operating expenses are paid at the location. By renting out your investment property, you could earn hundreds of extra dollars each month – for each property – all while building equity in your home.
Appreciation: Breaking into the real estate market means opening up the door to a future payout when you sell. Property values tend to rise over time, meaning the money you invest now will make you even more money in the future. As property value rises, so do rental prices, meaning you could make more passive income the longer you own your property. When you decide to sell your property, you’ll likely make a huge profit because of the added value of your home.
Build Equity: By paying off the mortgage on your property each month (or in your case, by having a renter pay your mortgage), you’re continuing to invest in the equity of your property which will come back to you in the future. Your equity is a part of your net worth, and as equity rises, you could gain the ability to buy more real estate and increase your investment portfolio.
How to start investing in real estate
For those of you who are ready to get started creating passive income and building equity in your next property, knowing how to get started is just as important as making the decision to move forward. You’ll need to know what to do step-by-step, so we’re giving you the tips and tricks for starting out right from our playbook.
Build Your Credit Score: Unless you’re paying in cash, you’ll need a good credit score to secure a reasonable loan for purchasing your first investment property. Banks offer loans based on your creditworthiness, so if you have a lower credit score, you might have to pay a higher interest rate. On the other hand, the higher your credit score, the lower your interest rate will be, and therefore the more money that stays in your pocket each month after operating expenses.
Save Money: You’ll need 5-20% of the total cost of the property in cash on hand for your down payment. Depending on the type of loan or property, your bank may require more of a deposit, so don’t rely on the low end of this range. Your credit score may also affect the amount you have to pay for your down payment to satisfy the bank’s requirements.
Saving as much as you can before purchasing your next property is your best at securing the lowest mortgage payment and interest rate possible, so you can keep the money you make.
Choose the Right Location: You know what they say about real estate: “Location, location, location!” You’ll want to investigate the area you’re looking to buy in before making a purchase. One of the benefits of owning an investment property is reaping the rewards of your home’s value appreciation when you decide to sell. Location plays a huge role in how fast your property appreciates.
At Turnkey Properties, it’s our goal to pair you with homes in the right location to make you the most bang for your buck. We buy in strategic areas of Little Rock and Memphis where we have a proven track record of success. You’ll benefit from the Turnkeys Property process, where we make sure your money is invested in the right areas of the city to make you money.
Choose Turnkey Properties!
The biggest advice we can give you is to turn to our real estate professionals at Turnkey Properties. Our team provides our real estate investors with expert guidance and fully renovated single and multi-family properties in Memphis and Little Rock. We acquire properties in strategic areas of both cities, renovate them to retail standards, place a quality tenant, and manage the property for our clients.
We cut out the hassle of property acquisitions and management so you can watch your passive income increase without stress. If you’re ready to get started, contact us today!