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When people think of a real estate investment property, they imagine buying a second home with the sole purpose of renting it out. However, your new house can reap similar rewards, especially if you know how to approach the purchase with savvy. Take a closer look at how to get the most out of your new home, below.

Building Equity on Your New House

Most people see a growth in their home value over the span of their ownership, typically as a result of updates and inflation. The increase compared to what you owe on the house is called equity. For your property to be lucrative, you want to make that figure grow quickly and higher than the area average.

How to Maximize Your Rewards

Real EstateTo achieve such a feat, try to find a property that's selling for well under market value. Typically, sellers of homes that require updates will accept offers under the listing price, especially if it has been on the market for longer than a couple of months. Foreclosure homes can make a great real estate investment because they're often only sold for what's left on the mortgage. However, be prepared to put in some work.

When making updates, you need to think like an investor by focusing on the wants of potential buyers. Study the local market and look for similarities between properties that sell quickly and for higher than their original listing. You may want to consider working with a local real estate agent who can offer expert insight into what makes properties popular.

 

Find a new home that also serves as a real estate investment by turning to the professionals at Gilbert Realty. Based in Mountain Home, AR, the team is composed of over 30 skilled agents across the Ozarks in northern Arkansas and southern Missouri. Whether you're looking for waterfront property or desire a private piece of land, the agency offers a personalized experience that considers your needs. Schedule a consultation today by calling (870) 425-6282, and get to know the area better by visiting them online.

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