Houston real estate investors – Reminders for First-time Investors – Every investor is different, and every investment property is different. People venturing into the real estate market for the first time need to establish their investment goals and stay consistent as they move through the process of identifying and evaluating the opportunity, acquiring the property, and creating an income producing asset.
Once the investment goals are established, the best thing to do is carefully choose some experts who can provide the support and resources needed for an exceptional and successful investment experience. At HNB Realty, we’re a boutique company specializing in real estate investment and asset management. We understand the importance of customizing a plan to the investor and their goals.
This is especially critical when the investor is buying rental property for the first time.
Here are a few things to keep in mind as the process begins.
Treat Real Estate Investments as a Business
Real estate can quickly become emotional, especially for new investors.
It’s important to detach from the property and even from the process if things become overwhelming and stressful. This property is not a home to be occupied; it’s an investment with a single purpose: to earn money. Maintain focus on the main metrics – cash-on-cash returns and 5yr annualized total return taking into account appreciation
Every decision needs to be made based on data, facts, and the recommendations of local investment experts.
New investors often don’t realize that it’s not necessary to fall in love with the property. This isn’t a home they’ll be living in themselves. Thinking about the asset as just –an income producing asset for a certain type of tenant – and not a home can help keep things in perspective.
Focus on what the investment property should provide; consistent rental income in the short term and total ROI in the long term.
Understanding the Houston Rental Market
Before investing, research is important to understand the rental market in Houston. There are nuances and trends from neighborhood to neighborhood in Houston, and there are also state and local rental laws that require compliance. It’s impossible for a new investor to know everything about the Houston market and its rental laws, but at least understanding the rental values, maintenance expenses, and vacancy rates for an area will help with budgeting and forecasting.
Educating oneself on the Houston rental market will assist with:
- Competitive and profitable pricing.
- Marketing strategies during the leasing process.
- Preparing the property for the rental market.
Depending on the property and the location, typical tenants may be families looking for good schools, professionals who want an easy commute to work, or retirees who will want access to recreational and entertainment activities. Understanding these details will drive important investment decisions.
Houston Property Management is Critical
Property managers in Houston are an excellent resource for new investors, but no investor should settle for a company that’s content to find a tenant, collect the rent, and schedule vendors when maintenance is needed.
An asset management company that can assist with every step of the investment process will deliver superior results. Find experts in the Houston market who can help identify opportunities, evaluate potential investments, and assess the income and expenses that can be expected.
Houston real estate investors – Reminders for First-time Investors – Our team can help. Contact us at HNB Realty if you’re a new investor looking to enter the Houston rental market. We’ll help you have a more profitable investment experience.