Many people want to invest, but hold themselves back out of fear of the unknown. In our latest post, we have compiled a list of things investors wish they knew before starting out in Arizona. Knowing these things will give you a solid start on your investment journey!
#1 – Keep Your Emotions in Check
Buying with emotion is something we have all done at one point or another. However, one of the worst times to do this is when you are making investments. Remind yourself that the property in an investment, not a home for yourself. Successful investing is a numbers game. Know your numbers and stick to them when buying an investment property in Arizona.
#2 – Don’t Wait Around For The Perfect Deal
Yes, you do need to stick to your numbers but don’t expect to find your dream land when buying an investment property in Arizona. Be open to compromise as long as the returns are what they need to be. Let’s say you were aiming to find property for commercial use. However, you just found an amazing residential lot in a great area. Don’t get so set on what you are looking for, that you miss out on an extremely lucrative deal.
#3 – Know Your Numbers
Before making an investment in real estate, run your numbers and projections on each property you are thinking about buying. Know these numbers and don’t stray from them. Ask yourself, how much can you pay each month? How much do you need to make? Negotiate to get the numbers you need, and if they aren’t there, the deal isn’t likely right for you.
#4 – Look At Annual Numbers, Not Just Monthly
It great to know what you are spending and making each month on a property, however, it is important to look at the bigger picture. Consider your annual cash flow which will include vacancies, repairs, management costs, and property taxes. The costs on a property go far beyond the mortgage.
#5 – Always Have An Exit Strategy
As with any investment, you should always have an exit strategy in place. What if you don’t see the returns you were expecting? Or what if something happens in your life that requires you to sell quickly? Make sure to have an exit strategy in place so you are blindsided by the need to sell quickly.