Choose the appropriate location
Choose a city with a lot of employment opportunities, a high average salary, and a variety of employers. Long-term demand for rental houses is assured by the rapid development of the population. Hence, look for a neighborhood with a lot of recent newcomers.
The ideal course of action would be for you to take into account the features that will draw potential tenants. They consist of quality hospitals, parks, restaurants, schools, and transit options.
Choose a location that gives a significant return on investment, last but not least. Analyze data from various housing market segments utilizing tools like Mashvisor’s Housing Market Heat map.
The tool has filters for sale price, cash receipts, rental receipts, and occupancy on Airbnb. Look into possible locations where you could make a 200K home investment.
Finding a real estate agent that will collaborate with you and fight for your best interests and the interests of your property is the next thing I advise. He or she should make themselves reachable by phone or email around-the-clock to answer any queries or concerns you or the customers might have. For marketing purposes, it is also beneficial to make sure they have a strong social media presence.
It’s crucial to sit down and talk about your future goals for this house with your agent after you’ve found one. Do you envision yourself residing there, for instance? Or are you only interested in owning a rental property? This might be a touchy subject because, if your concept involves knocking down walls, constructing extra bedrooms, etc., it might stray from a straightforward resale value.
Save aside money
The next step is to visit the bank and discuss obtaining a loan approval so you may make a purchase. It will be crucial to confirm that your credit score is in good standing once more. Your debt-to-income ratio is a common question that banks will ask since they want to make sure you can afford the loan installments. If this is a problem, it might be time to reduce wasteful spending and begin making plans for your new home’s future!
Speak with realtors
After everything is said and done, contact a couple realtors who specialize in selling fixer-uppers. When it comes to remodeling homes, you want someone that is knowledgeable. They ought to have images of their work posted online so you can reference them if necessary. Also, talk about how long it took them to complete one of their projects from beginning to end.
Make a home inspection
Your realtor must be involved from the beginning because they will be required for the home inspection. Typically, your agent or possibly another party engaged in the selling of this house will propose hiring a home inspector. They should be someone you can trust to give you their frank judgment about what improvements should entail.
It is advantageous to have them on board if you are working with a lender so they can speak to one another if necessary. For instance, if there is a particular item that requires repair, you could need a contractor to come take a look at it for a termite bond. Or something similar to get certified by the bank so that when it comes time for a close, everything is in order.
For homeowners who want to invest in real estate but don’t have a large budget, there are a ton of fantastic options available today. For instance, you may get a sense of what houses are selling for in your price range on websites like Realtor.com and Zillow. Some of these websites even let you make a custom search that will notify you right away when a new property enters the market.
Additionally, some companies like Homefinder provide free renovation guides, one of which contains advice on performing routine maintenance around the house that could end up saving you money.
After all of this is finished, it’s time to submit an offer! Sometimes, if your offer is sufficiently modest, you can purchase a home for less than the asking price, but the seller will probably counter. You can either take them up on their full offer at this time or leave and look for something else.
If everything goes as planned, you should be able to purchase the house of your dreams, provided that everything is in order beforehand.
Leverage to purchase additional rental properties
Invest with leverage in 200,000 euro properties. You’ll be able to purchase additional rental homes as a result.
Real estate investing is one of the best and safest ways to amass riches. There is no better way to invest if you are fortunate enough to make investing decisions in your life than with real estate. Of course, this also applies to property purchases!
You might not have considered getting a mortgage with a 200k Euro down payment for a specific rental property to be a smart move to obtain a high return. Compared to expensive ones, some investment properties are more cost-effective. They can increase your rental revenue, spread the risk across a variety of markets or property kinds, and diversify your portfolio.
Discover properties that aren’t listed for sale
A residence that is not on the MLS is considered an off-market property. This applies to properties that are bank-owned, foreclosed, short-sold, or in bankruptcy. These assets offer better yields, higher sales prices, and less competition.