Did you know that over 1 in 3 Americans consider real estate the best investment property? This has been the perception of most polled Americans for ten consecutive years. More U.S. investors prefer real estate over other assets such as gold, stocks, mutual funds, or bonds.
Real estate investments, after all, let investors earn income through rent and appreciation. They also allow investors to profit from business activities generated within the property.
So, if you've always wanted to own an investment property in Albuquerque, NM, now's a good time. We've shared tips on how to turn that dream into a reality, so read on.
1. Determine How Much You Can Afford
The growing population continues to strengthen the demand for Albuquerque real estate. Despite that, homes in the city remain more affordable than in other comparable areas. For instance, homes here have a median price of $350,000, whereas nationwide, it's over $400,000.
You can use that $350,000 median price as a benchmark when determining how much you should spend on a property. You can then compare this with how much you can afford.
If $350,000 is too steep, set the highest limit you can afford and stick to it. You don't want to go beyond, especially as you'd have to make a down payment of at least 20% to 30%. On top of that are the expenses associated with property taxes, repairs, or updates.
2. Start Your Hunt for Rental Properties
Albuquerque's cost of living is already lower than the national average. This is also one of the reasons the city's home prices are more affordable.
However, while price is critical when investing in real estate, location is just as vital. You'd want your property to be in a safe yet affordable neighborhood. These two are among the most crucial factors that help attract the right tenants.
Affordable yet safe Albuquerque neighborhoods include Bear Canyon, Nob Hill, and Taylor Ranch. Consider starting your search within these areas.
3. Hire an Investment Property Management Firm
Savvy Albuquerque landlords work with a reliable property management company. They do so since it allows them to delegate many of their landlord duties and tasks, such as:
- Marketing the rental property
- Tenant screening
- Collecting rent
- Renewing leases
- Evicting tenants who violate lease agreements
- Inspecting and maintaining the property
- Bookkeeping and accounting
The more tasks you delegate to a property manager, the less stress you, as a landlord, would face. Fortunately, full-service management companies can perform all those duties on your behalf. So, consider hiring one if you want your property to be a real passive income earner.
Follow These Real Estate Investing Strategies
Renting out an investment property in Albuquerque, NM, can be lucrative. However, you must be wise by sticking to a budget and buying a property in a great location. Lastly, hire a property management company to make your life as a landlord easier.
Let our team here at PMI4U be your trusted property management partner! We provide high-quality, full-service property management throughout Albuquerque, NM. Call us today to learn what we can do to make your investment more profitable.