When we talk about what makes a property an ideal rental, we often end up citing factors around the property rather than the qualities of the house itself. Things like location and proximity to amenities are of utmost importance – but it doesn’t mean any ol’ property in a good location will make a good rental.

What does it take to succeed in real estate investment? We’re sure you can think of plenty of skills and qualities. Honestly, so can we! But we want to boil it down to the essentials. Remember, hope is not lost if you’re not exceptionally skilled in these areas. Anyone can hone and enhance these skills to fuel their effectiveness as a real estate investor. And, for simplicity’s sake, we’re mainly referring to buy-and-hold SFR investing.

While these qualities apply on a broader scale, that’s the context we’re operating in, so that’s the kind of investing we’re speaking into!

Here are the skills you need to master:

2020 turned the real estate market as we know it on its head. While the fundamental rules of the business stayed the same, there’s no denying that the housing market reacted unpredictably. That’s not surprising in light of the uncharted territory of a global pandemic.

What’s the best way to buy an investment property? Just as there are many investment strategies, various financing options are at your disposal, each with drawbacks and benefits. While we certainly have avenues we recommend more than others, every investor should be well-informed about every option.

U.S. housing inventory is trending in the right direction. 

We saw a 12.9% year-over-year increase in new property listings in February. Although total inventory remains flat, we’re finally not seeing a decline in overall inventory for the first time in nine months.

As you’re likely aware, tight inventory is mainly responsible for the stubbornness of the housing market. Even when active demand seemingly froze market activity, prices haven’t budged. Inventory kept rising interest rates from easing home prices. It’s also made the supply and demand balance unsustainable.

Ideally, this increase in new home listings points to a turning point on the horizon. But there are a few problems – and reasons investors shouldn’t sit back and “wait out” low inventory.

We get it – houses are expensive, now more than ever. It’s only natural that investors would turn to low-cost properties. On the surface, there’s clear appeal: less capital upfront for an income-generating rental property. Why wouldn’t you go with the cheapest houses you can find?

If you’re like many people, you like to browse real estate listings. Sometimes, you come across a property with a shockingly low price tag in a great part of town. You might think, “Wow! What a deal!” Then, you start looking at the pictures and realize that the whole thing has been stripped down to the studs, and it would take double the asking price or more to get it habitable. Oof. 

That opportunity might excite some more hands-on, flip-minded investors, but it’s not for us. At that point, it’s pretty evident that the property will cost you far more than the seemingly low asking price. But it’s not always so obvious. Some properties may not look the best – they’re serviceable – or be in the best neighborhood, but they’re affordable, so why not?

Well, we’re here to tell you. Here’s why investors shouldn’t target low-cost properties.

You’ve undoubtedly poured over the details when looking for a real estate investment market. You’ve analyzed rental rates, median income, sales prices, local economics, and more…but have you asked about the weather?

Location matters, not just because of the economics, housing affordability, or rental demand but because of the climate. 

Both run-of-the-mill weather risks and natural disasters could jeopardize your investment property. If anything, it could be costing you a pretty penny in maintenance and insurance costs! Here’s what you need to consider about the climate as you choose an investment market:

The term “turnkey” isn’t regulated in this industry. The original concept is clear enough – turnkey properties mean you can “turn the key” and step right into a new or fully renovated property ready to earn passive income. But not everything advertising “turnkey” is doing the same thing. Because the definitions vary and the word is used purely for marketing, investors need to know what they want from a “turnkey” experience.

What do turnkey investing companies ideally do, and what are the signs that something might not really be turnkey? Keep reading to find out.

So you’re investing in real estate…but are you investing in yourself? Here’s the harsh truth – none of us are naturally adept at building an ideal financial future on our own. For some, financial success comes from parents who instill lessons of self-discipline and the value of a dollar. For others, it comes from personal research, lots of reading, or even degrees and certifications.

No one expects a passive real estate investor to be an absolute expert. You didn’t sign up for a passive gig just for it to turn into a full-time job! 

Sometimes, the best deals you do are the ones you said “no” to.

“How is that possible?” you might ask. We live in a time when the real estate market is competitive and contentious. That’s true for the average buyer, and it’s true for investors. Even now, we sense FOMO – the fear of missing out – plaguing the real estate industry. Potential homebuyers are afraid they won’t win their bid. Investors are worried they’ll miss out on once-in-a-lifetime deals. They think they’re doing something wrong if they’re not participating in the hottest new investment market.

But sometimes, staying out of it is better than jumping in.