Investing in Issaquah property can seem tempting to many, especially those who are already landlords or property managers. With a prime location just outside of the ever-busy Seattle, and a median property sale value some 40% lower than Seattle, Kirkland, and Redmond, it’s a prime location for real estate investors to start buying property. However, there are a lot of things you can consider before investing. Here are a couple of Issaquah property management and investing tips to consider.
Consider Units Carefully
Most investors automatically try to go after the largest and nicest thing on the market but this isn’t always a good idea. Buyers with less money to spend, or a smaller portfolio might be better off going after small and inexpensive units our homes rather than extremely large investments. This is especially true when it comes to actual homes as the return on investment is much lower for this type of accommodation. Instead, consider going after lower risk units that require less money up front to invest. At the same time, the condition of the property can greatly affect the price, so you should inspect the unit for damage and repair issues before agreeing to a price.
Consider Investing in Land
One thing that most real estate investors are afraid to do is invest in property. While you can’t rent property out immediately, or gen an immediate return on investment, it can prove profitable over time. If you have the connections and funds to hire contractors to build apartments on land then why not buy it? Empty lots typically sell for much less than housing, so by shopping around and getting good prices on land and on construction costs, you can cut investments on the same number of units by as much as half. For example, building a 12-24 unit apartment building is estimated to cost roughly between $64,000 and $85,000 per unit, or considerably less than the average $200,000 per unit purchase price. Building more units does lower this cost a bit, but not hugely. However, the cost of the property should be considered. Just do the math to decide which option is more affordable. Newly built apartments rent out for more, but you do have to consider that it will be longer before you see a return on investment.
Remember Location and Availability
Location is everything in real estate and apartments are no different. Consider their proximity to roads to Seattle, to local nightlife options, grocery stores, and even bus stops. The more nearby amenities and entertainment options the complex has, the faster it will rent out. However, this also means that more people are going to try to buy the property as well, so you may have more competition.
Is the Property Close By?
Last but not least, you have to consider if you can easily get to and from your new investment. Many people who invest in Sammamish real estate actually live in Seattle. The drive is usually 20 minutes without traffic, and as a landlord you might have to make it unexpectedly to deal with emergencies. One way around this dilemma is to simply hire a Sammamish property management company, who can also handle advertisement, maintenance, and tenant screening for you.