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Cheap Investment Properties in Salt Lake City
Investment properties can be a tough topic to understand, but it’s even tougher when you’re trying to find and work with cheap investment properties. I get you – there’s so much information out there it’s hard to decide where to turn when you’re looking for advice. I hope this article helps you and covers the basics of cheap investment properties. In this article, we’ll cover investment property for sale by owner, wholesale real estate properties, investment property for sale near you and how to find wholesale properties in general.
What is an investment property?
As the name suggests, an investment property is real estate purchased by investors and used for investment purposes. They are usually able to sell the property for a higher price after they make crucial improvements. Before purchasing an investment property, it’s always important to evaluate it and check how you can improve the value.
Pros and cons of cheap investment properties
Of course, there’s always the question – what are the actual pros and cons of cheap investment properties. Are they worth it? Considering the pros and cons is the best way to put your mind at ease before you make any long-term investments.
Pros of investment properties
- Get your money back (and earn extra profit) by becoming a landlord.
- Increase the property in value and sell it for more than it was worth.
- Tax deductible interest on investment home loans.
- No shares!
- A fantastic way of earning extra income that will only expand over time.
Cons of investment properties
- Repayments and expenses aren’t covered with your rental income.
- Your investment and future income depends on the value of the property market.
- Entry and exit costs are higher.
- Not being able to find tenants or getting bad tenants that pay late and cause damage to the home (to find out more about being a landlord, make sure to read our Landlord and Rental section of the blog!)
What makes a property a good investment?
Forbes outlines three important things that make a property a good investment with three crucial scenarios:
- Pays a Fair Cash-on-Cash Return
- Isn’t Too Risky an Investment
- Doesn’t Require a Lot of Time or Managing
So how do you decide if a property is too risky or if it will require a lot of management and upbringing after purchase?
Evaluating cheap investment properties
How can you make sure you’re investing in a property that will bring you extra income in the future? By evaluating it! Never dive head-first into something until you’ve evaluated whether or not this property could actually bring you profit.
Investopedia made a list of things to consider before buying cheap investment properties:
- Your mortgage payment
- Down payment requirements
- Rental income to qualify
- Price to income ratio
- Price to rent ratio
- Gross rental yield
- Capitalization rate
- Cash flow
After you’ve evaluated these 8 calculations, you should have a clear idea whether or not you should invest in your chosen property.
How do I find investment property for sale near me?
If you’re based in Salt Lake City, there are a couple of ways you can find cheap investment properties and one of them is by contacting our team – as cash buyers we know everything you need to know about real estate in Salt Lake City and we’ll be able to provide you with sufficient information on how to find investment properties.
Other ways to find wholesale properties
While you should always use the power of the telephone to find deals, here are some other ways you can easily find wholesale properties in your area:
- Referrals – by asking your current clients for a referral and a testimonial, you will make sure you have an ongoing list of contacts. Do a good job and your clients will be rolling in.
- Marketing your business – let people know you’re wholesaling properties for a living. Outline why they should choose you and specialize in real estate in your area. People always trust a realtor with knowledge – the more you know about investment properties in Salt Lake City, the more likely you will start getting clients who want your help with a specific case. Knowledge is power – learn how to market your business!
- With MLS – you can find REO sellers, HUD properties and more. This might take more time, and it might be harder to find good deals, but it’s a good way to start.
- Homeowner websites – call homeowners and let them know you found them through your website.
- Social media – use appropriate hashtags and location to find wholesale properties in your desired area. Search for #wholesale, #wholesaleproperty, #wholesalehouses, and browse anything that might come up. You can also set your wholesale social media page and create wholesale related content. Let your clients come to you!
- Real estate agents – a real estate agent will also help you with information you need to know about the area.
- Title companies – title companies can refer you to sellers who had a failed close. They might be limited to what information they can disclose, but you should be able to find wholesale property listings through them.
- Email Marketing – this involves some marketing skills, but the results are ideal. These days you can easily buy emailing lists of thousands of contacts and use them for email marketing. Create a convincing strategy with useful information and you’ll be able to get customers in no time!
And that’s it! These tips should give you a good idea on what it takes to find investment property for sale by owner. Don’t forget to read our other articles on wholesaling properties.
If you have any questions and still aren’t sure whether you should wholesale properties or not, make sure you give our team a call – we’ll be happy to help you out and provide you with more information on wholesaling properties! Our team specializes in real estate in Salt Lake City – we promise we have answers to all of your questions and more!
Want to Find Cheap Investment Properties in Salt Lake City
At Salt Lake Wholesale Homes, we specialize in real estate investing. Whether you’re buying a house to fix and flip, or if you’re interested in wholesaling properties, we’d love to answer any questions you have! Give us a call today at 801-810-8756, or visit our website to get an obligation free cash offer for your wholesale properties!