|Define Your Prescott Real Estate Investment Goals|
|Before you begin your Prescott income property search you must first identify your reasons for investing in Prescott real estate.|
Buying Prescott Income Property as an Absentee Investor
Buying Owner Occupied Income Property in Prescott
|Identifying your objectives and setting investment goals you will help you to focus your search for an income property. Each time you review a listing or visit a Prescott income property you should ask yourself would this property meet my objectives? Some of the specific factors that you should consider are:|
|Neighborhoods in Prescott
Determine which areas could accommodate your lifestyle needs and investigate the market in those neighborhoods. Are they in a healthy state to be buying? Are the prices within your range? Research recent sales and average return in investments for properties in your chosen areas. If you are considering owner-occupying, just because you’ve chosen a certain type of real estate to improve your financial situation that doesn’t mean you should sacrifice what is important to your life. Consider the consequences of living in a property that is not ideally situated to your lifestyle.
|Prescott Rental Market
Consider whether there is a strong enough rental market in your chosen areas; gather statistics on vacancy rates, etc. The Prescott area market usually has several pockets where rentals are always in high demand. Find out what the real estate market is like in those pockets.
|Economic Conditions in Yavapai County
Identify whether the general economic conditions are favorable to investing in real estate (look at mortgage rates, economic forecasts, etc.) Be aware of national, regional and municipal economic conditions.
Determine whether your real estate investment will be short or long term. Most financial experts believe that real estate is better as a long term investment but there are investors who buy properties to renovate and resell and achieve short-term success. You need to know which path you intend to follow as it may affect the type and condition of properties you view. Have an idea of how long you intend to live in your investment. You may wish to continue owning the property after you decide to stop living there yourself. This isn’t something you need to determine before you buy but it is good to always know your options and keep reviewing them in your mind as time passes and your situation changes.
Compare your real estate opportunity to other investments (stock, bonds, futures, gold, etc.) Identify what is important to your financial future (short term gain, long term stability, positive cash flow, consistent rates of return, etc.). If you are currently renting an apartment from someone else be aware that there is an opportunity cost in continuing to pay your money to your landlord. For example, if you are paying $1000 per month to rent and you continue to rent for another year the opportunity cost of not changing your situation is $12,000.
Taking the first step means opening your eyes to what is happening in the market around you. You will need to educate yourself on the types of residential real estate available in your city in order to better understand the types of opportunities that are out there. Compare different types of income properties in your city to determine which best suits your investment and living criteria. Educate yourself on what is involved with having tenants and know your rights and theirs by familiarizing yourself with Arizona Residential Landlord & Tenant Act.