Real estate won out again in the latest Gallup investment poll. The study showed that 36% of Americans consider it the best long-term investment. Stocks or mutual bonds took second place at 22%.
The difficult part of real estate is it can be a volatile market. If you want to prepare for changes and make money from it, you'll need an effective plan.
Read on to learn the best real estate investor strategies in Pittsburgh, PA.
Perform a Real Estate Market Analysis
Do your homework and analyze the local real estate market. What's the supply and demand like? What are the current rents?
Pittsburgh is a smart area to invest in. The laws favor landlords, as there are no limits on:
- Rent increases
- Late fees
- Landlord entry
Pittsburgh also has a strong economy, making it attractive to job-seekers. The housing market is large but affordable.
Once you've decided to invest in Pittsburgh real estate, look to find the right neighborhood to invest in. A few of the best include:
- Lawrenceville
- South Side
- Friendship
- Sheraden
- South Shore
- Brookline
Do your due diligence once you've found a property. Inspect it to make sure it's up to snuff. Learn all the local laws and zoning ordinances so you're prepared to follow them.
Get Financing
One of the most difficult parts of investing in real estate is financing the property. The most common option is a bank loan. Hard money loans are ideal for flipping properties. You can also get private money loans from friends or family.
You can even use your current home's equity. This is possible through a HELOC or home equity line of credit or a cash-out refinance.
The right option for you and the likelihood you'll be approved for it depends on factors such as your:
- Credit score
- Cash reserves
- DTI or debt-to-income ratio
- Insurance
- Property valuation
Build a Network
One of the best investment tips is to remember to invest time in the community. Use social media, online forums, or local groups to start building a network.
You'll get tips from and work together with other investors as well as:
- Real estate agents
- Property managers
- Contractors
Expand Your Property Portfolio
Single-family homes are one of the best options for a new real estate investor. There are also effective investment strategies beyond buying an already-built home and renting it out. They include:
- Rent-to-own
- House flipping
- Buy and hold
- Crowdfunding
- REITs
Using only one of these many real estate strategies is a classic case of putting all your eggs in one basket. If one fails, you could take a major financial hit.
That's why you need to diversify your property portfolio. Try different types of properties or different neighborhoods. It reduces your risk and increases your income opportunities.
A Property Management Company and a Real Estate Investor Make a Perfect Team
Being a successful real estate investor requires strategies such as researching the market, working to secure financing, networking, and expanding your portfolio.
DeSantis Property Management is a team of real estate management property rental experts. We've delivered personalized service to hundreds of clients in Pittsburgh and the surrounding area.
Our goal is to help property owners minimize their stress while maximizing the return on their investment. Contact us about your investment goals today to see how we can help make them a reality.
