The idea of owning real estate in Virginia for the expressed intention of renting the property out is a dream that many have, but achieving this success can be a bumpy road. Finding the right property isn’t enough, you have to prepare yourself for the challenges of being a landlord with education and practical knowledge. Becoming a landlord might seem like an audacious move, but more and more people are taking the leap every day.
Great Reasons to Invest in Real Estate
Look at it this way: with all of the homes in foreclosure, people are losing their homes and are going to eventually be on the streets. Their credit is in terrible shape and they aren’t making a lot of income because of the terrible job market. These people are still going to need places to live, places to raise their families. When you invest in Virginia real estate and turn it into a rental property, you benefit yourself with potential source of income, and you benefit your community by providing a home to someone who needs it.
For that matter, rental properties in our Northern Virginia region are always in demand because of our proximity to the Nation’s Capital and fine higher learning institutions. People from all over the country come to our region in search of opportunity, and those people need roofs over their heads, which you could provide if you invest in Virginia real estate.
No Time Like the Present
The fact is that a market like the one we are in now only comes along once in a lifetime, which is good in a lot of respects, but anyone who is in a position to invest now can make substantial profits in the long haul. It is just a matter of getting over that initial financing hump and finding good tenants to take care with your property while you allow them to rent from you.
It would be ideal if you were able to pay cash for the properties that you purchase, but oftentimes this can be difficult to pull off. Getting financing might be tricky depending on your situation or the condition of the property. A private backer that will let you invest their capital for a portion of the returns is also another option.
If you do have to get a mortgage on the home, then pricing your rent is going to be a little more difficult. You should set the rent so that it covers the mortgage, but still comparable to the other rental properties in your area. If you find that your rent is too high to compete and still cover the mortgage, then some small scale investments into improvements to the property might be in order. People are more likely to pay for luxury, which means that the nicer your place looks the more you can potentially charge. It may seem backwards to throw money at a money problem, but real estate investors know that sometimes you have to spend money to make money.
If you are interested in the great State of Virginia or Washington DC and want to make it the place of your housing business, you should talk to Virginia real estate agents about the investment opportunities and rental rates in your favorite area.