There is no map you can follow for making real estate investments and the road to riches can have many twists and turns. With that being said, there are a number of things you can do for putting yourself on the right path and ensure that you can achieve success in the long run. If you want to get into the mindset of professionals, here are some secrets shared by Asaf Izhak Rubin that can be immensely helpful:
Look for rental properties in emerging neighborhoods
Rental properties are an excellent way for you to make real estate investments. You can find tax incentives and growth potential when you opt for emerging neighborhoods. If you opt for these neighborhoods for buying your properties, you will be able to cover your cost with the income and maximize your profits.
Diversify your investment
The rule of diversification applies in every industry and Asaf Izhak Rubin says that real estate is no different. Yes, you do need to understand the area you are investing in, but this doesn’t mean that you limit your real estate to just your backyard. Consider investments in other cities and states because this gives you better opportunities. Plus, when you have diversified over a larger geographical area, your portfolio will remain protected against the volatility of local markets.
Don’t over leverage
You can be quite successful, but also go broke if every rental property is mortgaged to the hilt. Asaf Izhak Rubin believes that you finance some rentals and keep some of them clear and free because this will give you a good mix of safety and stretch your resources as well.
Consider single-family rentals
When you want to attract the correct tenant, the safest bet for you is single family homes. Who doesn’t want to live in a house? But, the reality is that not everyone can afford to do so, and some just down want ownership. In addition, single family homes tend to appreciate more than any other kind of investment.
Nip maintenance issues just when they start
Asaf Izhak Rubin suggests that you inspect your rental properties regularly. This involves looking around the toilets and under the sinks for water damage. You can save a lot of money if you find small water leaks before they are able to become big problems. This also applies to other maintenance issues. Getting them fixed in a timely manner and not allowing them to become bigger will save you a lot of hassle and money in the long run.
Know your market
When you are making a real estate investment, you should learn about your selected market in order to become an expert. It is essential to be well-informed about the current trends, which include increases or decreases in the average rent, interest rates, income and even crime and unemployment rates. This will help you in recognizing the current market status, so you can plan for the future. Once you are able to forecast and stay ahead of the market, you can become a more effective and successful real estate investor.
Set a timeline and budget
According to experts like Asaf Izhak Rubin, you should set aside 50% of your budget when you are a new investor. This will be your reserves because your budget is always going to go higher than anticipated when you rehab a house. It is natural for one issue to give rise to another. For instance, a leaky pipe may have to be replaced rather than fixed and may also include replacing the dry wall and removing mold damage.
Always have a rainy day fund
Lastly, you should always set aside some money for rainy days because there can be unexpected expenses when you own a house. Experts like Asaf Izhak Rubin say that there can be unforeseen expenses, so it is better to be prepared at all times.