THE POWER OF STAGING: BEFORE AND AFTER PHOTOS
Is real estate investing one of your New Year Resolutions? If so, here are some tips on how to start and do it right.
• Buy & hold strategy. Unless you have solid real estate expertise and deep pockets, stay away from the riskier investment strategy of flipping homes.
• Four Returns on investment. Rent (cash flow), principal reduction (equity), leveraged appreciation, and depreciation (tax savings).
• It is all about the numbers. Buy only break-even or cash flow positive properties, buy quality (reduced maintenance/rehab costs), and pay attention to location as it relates to current and projected rental rates (steady or growing), vacancy rates (5% or less), and local employment (steady or growing).
• Sources of down payment. Savings, stock market, retirement account, 1031 exchange, refinance an existing investment property, equity line of credit on a personal residence.
• Learn about the industry. The most successful investors take the time to learn about the local market, issues, trends, strategies, laws, etc. I highly recommend the Rental Housing Association of WA as a great starting point (www.rhawa.org). If you don’t have much time for this, then make sure your team of experts provides you with regular updates.
• Build your team of experts. Start with a Real Estate Broker with local expertise and their expert team of lenders, contractors and property managers.
• Have fun!
NEIGHBORHOOD HIGHLIGHT: COTTAGE LAKE BEACH CLUB
Neighborhood Established: 1966
Approx. # of homes: 123
Homes Sold in 2020: 5
2020 Lowest Sale Price: $660,000
2020 Highest Sale Price: $ 950,000
Location: Borders the East side of Cottage Lake, West of Avondale in Woodinville
Did you know? The homeowners in this neighborhood all have rights to use the community private park with a play area, reservable party cabana, swim area and dock on the lake. It is also next to the library.
Want to explore your options? If you want to work with a local Real Estate Expert, contact Ashley Farrington and her team will start working for you! 425-890-0025 www.AshleyFarrington.com