Hey everybody! It is a new year and new houses are going to go out into the marker! If you are looking into purchasing your first investment property or expanding you portfolio, well look no further! You have come to the right place. I will share my strategies here for the market of Buffalo, NY to help you expand your portfolio and cash flow, so you can be financially independent ASAP!
Strategies On Buy And Hold For 2017
I will share with you my strategies and what i have learned over the years on how to purchase investment properties throughout the year. The first thing i want to inform you guys is that, year round, the market changes from hot to cold. What i mean by this is usually around Nov-Jan, the market is fairly cold. Not a lot of houses are for sale but the few that are for sale, if you think its a good buy, purchase it. The reason behind this is it is that it is the holidays, and not everyone wants to be bothered with closing the deal, repairing the house at the sellers expense, getting rid of the tenants, etc. They usually sell the house as is with little to no hassle at all. A good example i can give for this is a house o recently purchased (I will talk about this house in another blog post soon) which is a 3 family house. It was listed for sale for $65,000 and i offered $56,000 and the seller agreed. I even said a few other things like minor repairs here and there and he also agreed to that. The sellers try to not even negotiate since they need the cash quick for the holidays and want to get rid of the burden. Now not every deal can be like this so you should always use your own experience and expertise to make sure you are purchasing a good property.
Aside from the holiday season, summer time is the best time of the year to purchase property. That is when the hottest house come into the market. All the flippers sell there furnished houses, all the other home owners or investors who want to get rid of there property come out to sell it. The major chunk of good deals i have found was during the summer. Now a bit of caution, just as all the hot deals come out in the summer, this doesn’t exclude it from all the bad deals that also come out. I have seen houses that i saw through Trulia or Zillow that looked extremely promising, but ended up being a nightmare when i went there. A word of advice to avoid this type of mishap happening is to get a really good realtor or property manager. The realtor would do a better job since they are well experienced and know which is a good buy. My personal realtor is also an investor who knows which house will last long and bring in the most income so include that as part of your goals and strategies for the year.
Now before you go and go on a purchasing spree, make sure you have all the necessary items you need to be ready for the house. The reason i state this is because everyone has a different situation. I personally live 6 hours away from Buffalo so i had to hire a property manager, otherwise i would not. If you live just as far away do not purchase the property without hiring a property manager. Also make sure you have a few personal contractors and handyman on the side so that if the house needs any work done you can get a quote from everyone and hire the best and most affordable labor. Your property manager is supposed to do this for you, but as i always state, not everyone is in it for your best interest.
These are my strategies for now, I will update them throughout the whole year as i learn new things and also i will add them if you guys share me your strategies as well. Now every market is different so this is for Buffalo, NY because that is my personal preference market in which i invest heavily in. I may diversify myself in the future, but to me personally this is a really good market with a high rate of return. Let me know if this was helpful to you guys and be sure to share this post with your friends and family!