Real estate investing is a great way to make varying amounts of money with relatively low risk compared to other types of investing. The current demand is huge and the increase in rental pricin have created investment potential that hasn't been there in recent years. Knowing a few pitfalls to watch out for before you start your search will save you time, money, and frustration. Trust me..I know as I have represented many investors!
1. Boise Income Property Expectations.
Boise is a fantastic place to invest, but don’t expect returns of 7% or more right away... while it is possible, it isn't likely, and you should be happy to just pay the mortgage with the rent you receive and make a few percent on appreciation. It is a long term investment.
2. Cost Calculation
You will have a variety of costs when you buy an investment property. These include closing costs, homeowners insurance, vacancy insurance, maintenance, and more. It is entirely possible to have a negative cash flow rental when a variety of factors contribute to that.
3. Understanding the Boise Market
Yes, you can make money in investment in Boise, but since factors are favorable, many others are trying to do the same thing. Competition for the popular rental house--under 250,000 in an area close to downtown or the University with three bedrooms--is fierce, with multiple offers. This drives the prices up. Consider where your property will appreciate most and vacancy rates per area before you buy any income property. You will want an experienced Realtor by your side!
4. Boise Investing Realities
You should expect to put 20% down as financing can be a bit of a challenge. You shouldn’t expect that appreciation will go back to how it was pre-2008. Housing values have grown but unstable markets don’t guarantee anything.
My fiance and I have converted our Northend property into short term corporate rental (think VRBO/Airbnb) and have been very happy with the outcome!
Please let me know if I can be of any help looking for that income property you have always wanted to buy. Jill Potter firstname.lastname@example.org