Investing in Pocatello real estate is a good idea, especially if you’re looking for a lucrative and rewarding way to establish a solid financial foundation in a growing market.
A lot of people we talk to have the desire but not necessarily the know-how.
This is why it’s so important to surround yourself with real estate and property management professionals. We can help you set yourself up for success. Investing can be rewarding, but it’s also risky.
Real estate investments in Pocatello can deliver high rents, great appreciation, and an opportunity to grow your portfolio.
If you do it right.
Here’s how to invest in real estate.
Surround Yourself with Real Estate Experts
You’ll benefit from a strong network of professionals who have already made the mistakes you want to avoid. Reach out to real estate agents and brokers, property managers, lending professionals, insurance agents, contractors, and other professionals who work with residential properties every day. You’ll have access to resources and tools that you don’t already have.
You can benefit from professional services that many of these experts provide, but you’ll also find there’s a lot to learn just by watching and listening. Follow blogs and podcasts on real estate investing. Get to know the most reputable people in the local Pocatello real estate market.
With the right network, the learning curve will be far more manageable when you’re investing in properties.
Establish Short and Long Term Investment Goals
Don’t start investing if you don’t know why you’re doing it or what you’re looking for.
Establish some investment goals, and put them in writing. Understanding what you hope to accomplish will help you identify the right opportunities and make smart decisions. If you’re investing for cash flow, you’re going to be looking for much different things than someone who is more interested in appreciation or is planning to use investment properties to fund retirement.
Establish your goals before you get started, and then re-evaluate those goals every year. Talk about those goals with your broker and your property management company so you can make sure everyone is aligned on the type of properties you hope to buy.
How to Find the Right Pocatello Investment
The right investment property is a profitable one.
You’re looking for a rental home in a good location. Explore the market and get an idea of:
- How much rent you can expect to earn.
- What types of tenants will want to live in your home.
- How long it will take before you’re able to rent it out.
- What kind of maintenance expenses you can expect.
Think about how prospective tenants will view the property and whether it will be easy to attract well-qualified residents.
Beware of the fixer upper.
Lower price tags are attractive, but those low-priced properties often require a lot of work. Maybe that’s what you’re looking for, and if it fits your investment profile – great.
However, you have to remember that properties requiring a lot of work are going to take longer to earn you any money. If you spend months rehabbing a fixer upper, you’re not going to earn an income for a while. The vacancy time alone will be expensive, not to mention the money you have to invest into remodels and renovations.
Pay Attention to the Math and Budget for Maintenance
You need to know how you’re going to fund your investment. Look at options through traditional lenders like banks as well as alternate funding sources like hard money lenders. Decide how you want to leverage the investment and whether it’s more important for you to have some impressive cash on cash returns or if you’re willing to wait for the asset to appreciate over time.
Always budget for maintenance, repairs, vacancy, and other variable expenses. You cannot invest successfully without knowing what you’ll earn and what you’ll spend.
These are some of the things to consider when you’re investing in real estate. There’s a lot more to tell you, and we’re experts on the Pocatello real estate and rental market. Let’s talk about how you can make the most of your investment experience. Contact us at Jacob Grant Property Management.