Buying a property in Providence? Use these hacks that property investors use to save time and money when buying a Providence home.
Buying a piece of real estate is a huge financial decision. The thought process can be much different than when buying a property for yourself. Seasoned investors utilize specific tools and strategies to help them find the best deals available when buying real estate in Providence. At The Reservoir Group, we are happy to share our information, strategy, and property list to those who are ready to invest here locally! To get started, take a look at some of these hacks you can use when buying an investment property in Providence!
Work With A Professional
When you work with a professional home buyer such as The Reservoir Group, you won’t get stuck doing all of the legwork. Our acquisition team only acquires the best properties for sale in Providence. Each property is fully analyzed and reported on so you can get the facts about a property, without having to do the research yourself. Whether you are just starting out in real estate investment or you are a seasoned professional, when you work with someone who buys for a living, you can rest assured you are getting all of the facts about a property and will be able to expect a smooth and convenient transition.
Bigger Doesn’t Mean Better
You may think that getting a five-bedroom house at a great price is better than getting a two-bedroom house at a great price, however, this isn’t always the case. You will need to look at the demand in the area. A neighborhood that attracts young singles, may not be the best place for that five-bedroom investment, whereas if you were to pick it up in the suburbs, the demand for the property would likely be much greater. Run the numbers for your investment and determine which property will offer the most bang for the buck. Keep in mind, a larger property will cost more to maintain and also come with a higher tax bill.
Explore The Neighborhood
A property is only as good as the location it’s in. Even a great property in a bad neighborhood isn’t going to perform well. Driving through the neighborhood will give you a general idea of the area, but as a savvy investor, you may want to take things a bit further. You can drive the area at different times of the day and on different days of the week to get an idea of traffic patterns and noise issues. You can get out there and talk to neighbors and local residents to get their take on the area. You can visit local restaurants and retail establishments to get a better feel for the community. When it comes down to it, if you aren’t already personally familiar with the area, take some time to get to know it before you buy there. You’ll want to be sure that you are investing in an area that will attract great tenants who are going to stay long-term.
Keep A List of Trusted Vendors Handy
When investing in Providence real estate, there are likely to be a number of select vendors that you will utilize on a routine basis. You should have your trusted carpenter, lawyer, accountant, lender, cleaning service, and title company all on speed-dial. Having an efficient and trusted team in invaluable. Once a property is acquired, you’ll want to make sure you have the right people by your side to help you with any aspect of the property as quickly as possible. Time is money when it comes to real estate investment, and a smart real estate investor will always have the best people for the job readily available.
Consider Your Financing
When buying an investment property, you don’t necessarily have to save up your cash to put down 20%. You can get creative and buy a 4 unit property with an FHA loan, occupying one of the units yourself and putting only around 4% down. Or you can work with a private lender to help you to get the money you need quickly and without any prepayment penalties. You could also choose to partner with someone else, preferably someone with a few deals under their belt who can help to show you the ropes.
Buying an investment property in Providence is a smart and often profitable decision. Working with The Reservoir Group will allow you to quickly and easily find some of the best investment deals out there. Let us do the legwork, while you spend your time deciding which investment property will best fit your portfolio and future income goals! The majority of wealth is built through real estate and our team is ready to help you get started!