If you are starting out as a real estate investor in Des Moines, you are likely on the hunt for your first good investment. However, are you really confident that you will be able to identify a good investment property when you see it? Better yet, what exactly is it that makes a Des Moines property “a good investment”? If you are anything like most green real estate investors, you have probably pondered these questions more than a few times. Obviously, you don’t want to start out this new career on the wrong foot. With that in mind, today we are going to dive into the qualities that separate a wise investment from one that will tank your portfolio before it even gets off the ground.
What Are Your Investing Goals?
Des Moines properties are not created equally. What makes a good investment for one portfolio may not be such a hot idea to the next. The first thing that you need to do to set yourself up for success is to determine and write out your unique goals as an investor. For example, are you looking to supplement your regular salary with some passive income on the side? If so, buy-and-hold rental properties are likely your best strategy. However, if you are looking to make this your full-time career, flips might be a better approach. You can’t begin to search for or identify a good Des Moines investment property until you understand what you are trying to achieve.
Analyzing The Current Real Estate Market
In addition to analyzing the characteristics of a property, you must also look at the bigger picture of the market that the property is in. The current real estate market conditions will play a major role in identifying a money-maker from a money pit.
Here are a few the market conditions that you need to include in your assessment:
The median price per square foot
The median sales price
The median income
The health of the job market
The health of the real estate market
Whether you are planning to flip properties or use them as rentals, you are always looking to buy low and sell high (at some point). Each of these factors will help you to identify whether or not you are getting maximum value on your investment.
Looking Ahead To The Future
Identifying a wise investment property in Des Moines requires you to look beyond the here and now. You must also use the information that you have about the current state of the economy to make reasonable predictions about where it is headed. One key indicator that property values will increase within the next couple of years is an influx of jobs being added. For example, right now companies like Amazon are bringing thousands of new jobs to Des Moines which will likely increase our local property values because there will be an increase in demand.
Bring In A Second Opinion
Any successful and seasoned real estate investor in Des Moines will tell you that having a second expert opinion to assess a potential investment property will pay off. Since you will be acting as a buyer in your first transaction as a real estate investor it will cost you nothing to enlist the expertise of a Des Moines realtor that specializes in working with investors like you. Not only will your realtor be able to save you time by searching for potential investment properties, but they will protect your best interests in the negotiation process and educate you along the way. They will all also be able to align you with valuable venders that you will need along the way in your investments.
Need Help Finding A Secure Des Moines Real Estate Investment?
Although there can be some greater rewards when you take big risks, most of the time it is wise to start out with investing in properties that have the most promise. In order to narrow your search, save yourself time, and reduce your risk of choosing the right property, set up a consultation with us today. Just go to our services tab above and we will sit down with you and develop a personalized investment strategy that makes the most sense for you.
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Liz and Chase