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A Competitive Guide for Purchasing the Best Investment Property in Littleton, Colorado

A Competitive Guide for Purchasing the Best Investment Property in Littleton, Colorado - Article Banner

The Littleton, Colorado real estate market offers investors a lot of opportunities. Whether you’re looking for a single-family home in an HOA neighborhood or a collection of units in a multi-family building, the market is diverse and growing. We enjoy working with first-time investors as well as experienced real estate professionals who are growing their portfolio of rental homes.

While there are lots of benefits and advantages to real estate investing, there are some risks involved too. It can sometimes seem difficult to identify the right investment property and make the right moves when you’re negotiating and closing the deal. Mistakes are easy to make, and sometimes they’re expensive.

Smart investors know that expert opinions and professional help can be invaluable during the process of buying investment property.

There are a few important things to consider before you buy.

Selecting the Right Rental Property in the Right Location

You don’t have to be an expert in real estate to understand the importance of location.

Location is an important part of your investment success. Homes in desirable neighborhoods and near good schools, commuter routes, parks, and recreation are going to rent for more than homes in remote or busy areas. The location of a rental property also has an impact on how quickly you’ll be able to rent out your property and the types of tenants you’ll attract.

Most buyers work with a real estate agent, which is a great idea when you’re evaluating the inventory and negotiating price. Don’t forget to include a Littleton property management company when you’re trying to decide where to invest. You want to consider vacancy rates and retention rates. Focus on areas with higher rents.

Remember that you’re buying an investment property, not a home you’re going to immediately occupy. Think like a tenant. High-end appliances and garden tubs are gorgeous, but are they necessary? Focus on move-in ready properties instead of fixer-uppers. Homes needing work can be attractive because they cost less, but the amount of time it takes to renovate and prepare them for the market will only delay your ability to collect rent.

Understand the Math on Your Littleton Investment Property

A lot of investors get excited about a property and they sign on the dotted line before they really run the numbers. Do your math. Several financials are far more important than the property’s purchase price. For example, you’ll have to know how you’re paying for the investment. What kind of leverage are you going to have and how much cash are you able to put down?

Make sure you can meet any lending requirements, and have a plan in place for how you’ll finance your real estate purchase.

Measure your expected rental income against your anticipated expenses. You’ll need to factor in the mortgage payment, insurance, and taxes. But, you’ll also want to budget for maintenance and vacancy. Don’t forget to include your property management fees and other professional services.

Property Management in Littleton, Colorado

House keysNo one is an expert in everything. As an investor, you need to rely on a team of professionals who can help you maximize your investment’s potential. Real estate agents, mortgage professionals, housing inspectors, and insurance agents are critical. You’ll need an attorney and an accountant and a Littleton property management company.

We’d love to help you identify the right rental property. Contact our talented team at Assured Management.