If you’re interested in investing in real estate here in Knoxville, there are a few quick tips to remember to help you start off on the right foot.
First, don’t limit yourself to one part of town. Broaden your horizons in terms of places to buy and perhaps look in outer-lying areas. An outer-lying area could be an up-and-coming one, and you could end up getting a better deal there.
Second, make sure your monthly rent payment is at least 1% of the property’s final purchase price. For example, if you buy a property for $100,000, your monthly rent should be at least $1,000.
Broaden your horizons in terms of places to buy and perhaps look in outer-lying areas.
Next, don’t over-rehab your home. It doesn’t have to be Pinterest-ready; just apply some mid-grade repairs to the flooring, cabinets, fixtures, etc. Remember, this isn’t your personal home—it’s a rental home, so remembering this tip will save you lots of money.
Also, focus on buying single-family homes. There will always be a huge demand for these types of properties, which means you’ll always have a tenant ready and waiting to move in. Plus, I always advise my clients to think of resale value when buying an investment property, and single-family homes usually sell fairly quickly.
Lastly, talk to a CPA or financial planner to fully understand all the tax benefits that come with buying an investment property.
As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.