As of May 2023, 34% of Americans believe real estate is a better long-term investment than stocks.
Getting started in real estate investing is intimidating, but you can increase your monthly income significantly if you work hard. Chattanooga, Tennessee, is growing in popularity, making it the perfect place to start your investment journey.
We have a lot of tips and tricks that can help you as you start looking for your first real estate investment. Below, we've listed several Do's and Don'ts that you'll find useful.
Do Real Estate Investing Research
The first thing you should do is research. You'll want to understand the different neighborhoods, property types, and local market trends in Chattanooga.
You'll also want to consider factors such as job growth, population influx, and infrastructure development that could possibly affect property values.
Using online resources and local real estate forums can be very helpful during this stage of the process. Doing extensive research can take time, which leads us to our next tip.
Rushing an investment deal is not recommended for beginners and experts alike.
Avoiding impulsive decisions can save you a lot of work and money. You'll want to spend a significant amount of time doing thorough research and evaluating potential properties.
Hasty decisions can lead to costly mistakes.
Do Work With a Pro
Working with a pro is one of the easiest things you can do. A local real estate agent will provide insights and access to listings.
They'll help guide you through the process, which can be invaluable, especially if you're new to the area. A realtor will also have other local contacts that could be very useful for you.
Do Diversify Your Portfolio
There are many types of investment properties that you can purchase. This makes it easier for you to diversify your investment portfolio.
Having different types of properties can help decrease your risk. You'll want to consider investing in single-family homes, multi-family units, and commercial real estate.
Don't Neglect Property Management
It's not uncommon for a new investor to overestimate how much they can do alone. Whether you're investing in commercial real estate or a single-family home, working with a property management team is crucial.
As a first-time real estate investor, it's easy to become overwhelmed with all the tasks that are required. Having a reliable team to help you with tenant issues and maintenance problems can help increase your profits and decrease your stress.
Once you hire a team, you'll have more time to focus on real estate investing and growing your portfolio.
From Beginner to Real Estate Pro
Now that you know the dues and don'ts of real estate investing in Chattanooga, Tennessee, it's time to get started. Use the tips above to increase your chances of success.
Creating the right approach and strategic plan will increase your chances of having a successful and profitable investment property.
You don't have to go on this investing journey alone. We have a staff here at PMI Chattanooga, full of experts who are available to help you. Send us a message today and we will answer all the questions you have.