Real Estate Analysis This Is How to Become the Most Successful House Investor in Town by Yoana Leusin December 18, 2017February 10, 2019 by Yoana Leusin December 18, 2017February 10, 2019 Since ancient times people look for a shelter – a safe living space, a place of their own. Nowadays, we refer to such a shelter as home, regardless of whether we rent or own the place. This exactly is the reason why being a house investor is and will always be a needed position. However, making money in real estate investing is not so straight forward. Many realtors enter the residential real estate investing business in order to achieve financial independence. Others aim even higher – they want to be the most prosperous in the real estate field. Despite the fact that realtors have various motives for choosing this career path and different goals to follow, each and every one of them wants to be a successful real estate investor. Are you intrigued? Do you want to know how to become the most successful house investor in town? Keep reading and the secret will be revealed. Related: What Does It Take to Become a House Investor? #1 Do Not Be Afraid of Hard Work If you want to be a prosperous house investor, you should know that this requires dedication and hard work. Making money in real estate investing is considered to be an easy job. The truth is that this is not the case. When it comes to long-term rentals, for example, real estate investors do not have to invest that much time in the property once it is leased out. However, the whole process of finding the best real estate markets for investment as well as the right real estate property requires a lot of effort and diligence. Moreover, even when rented out, the investment property is your obligation. This means that the house investor is the one to deal with the property management. Consequently, for being a successful real estate investor, you need to work very hard. Don’t be scared! Mashvisor is always here to help and guide you! #2 Set Up a Real Estate Investing Business Plan Every house investor willing to be making money in real estate investing needs a proper business plan. Perhaps the most important part of such a business plan is setting up your investment goals. Every successful real estate investor needs to think of realistic goals, which he/she will be able to achieve. Yet, the goals need to be set high enough in order to force the development of the real estate investing business. For example, think how to grow your real estate investment portfolio. Consider what property types you would like to include in your portfolio as a house investor. What property management would you like to establish? How would you like to present yourself on the residential real estate investing market? Most importantly, what are the ways to grow your real estate investment portfolio? What strategies will you use and how would you work in order to grow your real estate investment portfolio? #3 Consider Your Budget and Financial Assets In order to achieve financial independence, a house investor should carefully create a business plan and constantly monitor its development. Lay out your available financial assets, including possible loans. Establish a primary way of managing your budget; if you have a mortgage, calculate your down payment and the coming up expenses. In order to achieve financial independence, you need to define your target income and work towards earning it. Return on investment can be useful in this case. Return on investment shows the return as a percentage of the real estate investment. Thus, return on investment evaluates the efficiency of your residential property. Another important characteristic is the cash flow. In order to be the best house investor, you should invest in real estate properties which generate positive cash flow. Positive cash flow means that the rental income the property generates is higher than the costs associated with the investment. Take your time in creating your budget, this is an essential step towards your success as a house investor. #4 Conduct Research The best house investor is the one who researches the market and conducts investment property analysis. In order to find the best real estate markets, the real estate investor needs to explore the field. It is advisable to read some information about the possible fields of investments. After you have narrowed down the best real estate markets, dig deeper and get more insights to find the right location for you and your business plan. The next step is to conduct investment property analysis in order to find positive cash flow properties. A great helper in conducting investment property analysis is the investment property calculator. The investment property calculator is a great real estate analysis tool, which saves a lot of time and effort. Additionally, the tool provides quick and accurate results. Mashvisor’s investment property calculator computes cash on cash return, cap rate, cash flow, potential rental income, etc. Moreover, it offers some unique features as detailed neighborhood analysis as well as investment property analysis and a suggestion of the optimal rental strategy (traditional rentals vs. Airbnb rentals). Using Mashvisor’s investment property calculator is the smart choice for every successful house investor. #5 Explore Your Investing Options In residential real estate investing there are two main investing strategies: Fix-and-Flips Many successful house investors choose to buy investment properties which are low at value, renovate them, and sell them at a higher price. Even though this sounds as an easy task, the house investor needs to know what real estate properties have a strong potential in order to invest in them. Additionally, the realtor needs to know the right time to place the property for sale on the real estate market. Further, the house investor needs to have a qualified team in order to be able to fix the real estate property in question. Last but not least, the realtor needs to consider his/her real estate investment portfolio. Many real estate investors choose to finance multiple investment properties. Although there is nothing wrong in investing in multiple investment properties, it needs to be noted that the house investor should be able to manage all of them properly. Thus, the realtor needs to consider investing neither in too many nor too few multiple investment properties. Related: 5 Tricks to Save on Fix-and-Flips Rental Properties Almost the same rules are valid for investing in rental properties. You need to find the best real estate markets, conduct investment property analysis, and find the right rental property. Additionally, you need to be able to set the monthly rent according to various criteria so that you are both making money and avoiding having your place vacant due to high rent. Moreover, you need to choose the optimal rental strategy (traditional rentals vs. Airbnb rentals). The latter, nevertheless, is an easy task with Mashvisor’s investment property calculator. Last but not least, remember that you are the one standing behind the property management. It is advisable that you look after your property well, manage your resources, and fix any problems on time. Related: How to Buy a Rental Property as a New Real Estate Investor in 7 Easy Steps If you want to be the best house investor, follow Mashvisor’s tips and guidelines and you will certainly get there! Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL FinancingFix and FlipMarket AnalysisRenting Out 0 FacebookTwitterGoogle +PinterestLinkedin Yoana Leusin Yoana is an experienced content writer with a BA in leisure studies who enjoys giving tips to beginner real estate investors. Previous Post Learn How to Manage Multiple Rental Properties Like a Professional Realtor Next Post Learn How to Invest in Rental Properties as a New Investor Related Posts Invest in the Top Neighborhoods for Airbnb San Diego in 2018 What Is a Competitive Market Analysis? How to Calculate Cap Rate: A Step towards Becoming a Successful Real Estate Investor Question of the Day: What Is My Property Worth? 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