If you’re looking to start an investment portfolio then real estate is one of the best ways to go. With the potential for long-term returns that will last long after retirement, a relatively stable market, and the potential for a high return on investment, it’s hard to pass up. If you’re looking to invest in Sammamish property, then even better.
Sammamish is a rich cultural area with a diverse income and population, plenty of draw for homeowners and renters, and a high-demand for housing. We’ll talk about how you can get started investing in this market, including raising capital, property type, realtors, and even whether or not you want a Sammamish property management company to help you out. Let’s get started.
Unfortunately, real estate investment does usually require a larger amount of initial capital than most other types of investments. However, if you do have a smaller amount of money that you want to invest, many investors get started out in the real estate business by taking our a mortgage on an investment home and making payments. So you don’t necessarily need hundreds of thousands of dollars to get started. You will, however, require 10-20% down, plus money for initial repairs, advertisement, and readying the home for renters.
Other options include finding an investment partner, taking out a loan, or seeking a business grant. These each have pros and cons depending on your exact situation.
Choosing an Investment Type
There are several different types of real estate investments in Sammamish including commercial buildings, single-family homes, multi-family homes and condos, and apartment complexes. As a general rule, the more units in the building the less you pay per unit, but the more you will have to pay upfront. For example, if you purchase a duplex, it might only be slightly more expensive than a single family home, while an apartment complex with 10 or more units will likely sell for less than $80,000 per unit. Unfortunately, if you don’t’ have the initial capital for that, then you will have to choose a single family or other less expensive investment option.
Choosing a Realtor
Choosing the right realtor is a big part of investing in property in Sammamish, especially if you aren’t overly familiar with the area. A good realtor will know the area, know which neighborhoods are in higher demand, and even tell you which amenities are in which area. For example, they could tell you which neighborhoods are closer to schools, which neighborhoods take longer to sell homes, and other data that could help you with choosing a home that will rent easily. You’ll have to talk with a couple of different realtors but you can most likely easily find a good one.
As a new real estate investor you probably don’t know much about being a landlord. While you could put your investment on the market and rent it out yourself, there is a lot of work involved, especially if you’re working full time. Most investors can greatly benefit from hiring a local Sammamish property management company to handle their marketing, tenant screening, paperwork, maintenance, and rent. While it’s not a must, it is the easiest way to get into property investment, especially because most good management companies won’t charge until they’ve rented your unit.
Want to know more? Contact us at 425.285.1324
The discussion herein is of a general nature only and is not to be construed as specific legal advice, which requires the establishment of an attorney-client relationship and fee agreement. SJA Property Management does not provide legal services.