Are you considering an investing in real estate? Upon making the decision to take the next step and invest, your first priority is to determine how long you would like to own it. There are benefits to having a short-term or long-term Denver investment property. Use these tips to help you decide what is best for you, and how to utilize the help of a property manager to increase the return on your investment.
Short Term Investments
If you are looking for a rental to profit from, but are unable or do not want a long-term commitment, consider a short-term investment. One of the most common ways to do this is to either purchase, flip and re-sell a unit, or rent it out for a short duration of time. You could consider purchasing a property, investing in it to update its quality and renting it, then finding a buyer to take over the property. While the commitment is for a shorter amount of time, it can be a riskier investment. It ultimately depends on the market and how quickly you can rent out the unit and sell it to another property manager to take over. Ideally if you prefer this route, invest in an area with demand. Save up and coming areas or slowed markets for long term investments that can change over time.
Long Term Investments
If you plan to rent out a property, a long-term investment is your go-to option. It enables you more flexibility on location and lending abilities. After a duration of time, you will be able to claim the income for your taxes and take advantage of benefits. In general, when owning a rental property, the property will increase in value. The market can bounce, enabling you to sell when you will be profitable and have made a great return on your investment. You will also find an investment in a rental allows you have consistent supplemental income. Upon building your savings for the unit, you have the funds to boost money coming in. Wondering how much should a landlord allocate for monthly maintenance and repairs
? Ideally, you should have a goal of two percent of the property’s annual value.
Benefits of a Property Manager
Whether you are looking to invest in a short or long-term rental, you can increase your gains with a property manager. A property manager will take care of any or all of the tasks needed to manage the property. It can be as simple as vetting out renters, to maintenance and leasing assistance. It is helps to save time and money that you don’t have. The expertise is especially beneficial for those new to the profession, or could use help in different areas.
As you prepare to invest, make sure you learn what to know before buying your first Denver residential rental property
. For assistance with your short or long-term rental, contact DenCO Property Management and Sales. There hasn’t been a better time to invest in real estate in Denver, and we are here to help with anything you need along the way. See how we can work together on your property by calling us at 303-722-9688.