To the average person, the idea of buying property specifically to rent to others or flip (when you purchase a piece of real estate then quickly sell for a profit) can be daunting. But, local real estate agent Mindy Jones Nevarez, owner of the Amy Jones Group at Keller Williams Integrity First, says that it doesn’t have to be with the right information, research and guidance.
How to Get Started
When it comes to purchasing real estate for either renting out or flipping, Jones Nevarez says that it’s important to do your research and meet with a lender and real estate professional who you trust. Unless you are purchasing the property with cash, you should understand exactly how much money you need to get started and a good understanding of the local market’s inventory, average days on market, and which way pricing is trending, she explains.
“One option that I am working to put together is a plug-and-play solution for a small group of investors to buy some property together and make money renting or flipping as team,” she explains. “I’m hoping to create [this] strategy that, with professional guidance, can help people who thought that investing was out of reach to get started.”
The Perk of Renting
A major perk of renting out a property is the long-term income. In the current market, Jones Nevarez says, there is more demand for rental properties than properties that exist—giving property owners an edge. It often takes little money to ready a property for the rental market, and with rents continuing to rise, purchasing a property in a low inventory market can be lucrative. Not only will your property values likely raise in the short term, but you will be able to charge more for your rental provided inventory remains low, she adds.
One concern for many, and often what holds people back from investing in a rental portfolio, is the fact that the property needs to be maintained, all while you’re living in your own home.
A recommendation for property owners is to keep a home warranty on the property that can be used as a single point of contact for repairs. Another is hiring a property manager who can act as your go-between for tenant-related issues.
The Benefit of Flipping
When it comes to flipping, Jones Nevarez notes that real estate investors should use money that they have available for investing or work with partners in a real estate investing group that designates money for the purchase, repairs, upgrades, and listing fees.
She cautions that what sets many investors in the flipping space a part are their preparedness for the process and the finances associated with it. Many underestimate the investment to make the property market-ready, and don’t calculate all of their expenses into the project, making their profit much less than expected. However, when done right, the money that comes from flipping a home can be exceptional in a low-inventory market, and the money made can be used to invest in more real estate to expand their portfolio.
Real Estate As Part of An Investment Strategy
When it comes to the local market, Jones Nevarez explains that the Chandler area and its surrounding cities is one of the strongest real estate markets right now. With exceptionally low prices, continued business development and infrastructure growth, the Southeast Valley continues to be one of the best places to see a return on investment, she notes.
To learn more about renting, flipping or for answers to general real estate questions, email Mindy Jones Nevarez at the Amy Jones Group at Keller Williams Integrity First at info@AmyJonesGroup.com or call 480.250.3857.