The word is spreading in the world of real estate—“Now is a good time to invest in Montgomery AL real estate.”  The reasons behind this advice appear to be both numerous and sound and include justifications such as low home real estateprices and interest rates, an increased demand for rental property, strong signs of a recovering real estate market, and the continuing volatility of the stock market.

Think that you might like to invest in Montgomery AL real estate and become a landlord?  Then continue reading.  Investment gurus and experienced Realtors have many sage pieces of advice for you about property selection, financial considerations, and building a team.  Among them are:

  • Find the right piece of real estate:  The Internet can be your best friend when searching for houses to buy, so remember to use the net to check out homes and neighborhoods. Investigate current rental rates, average salaries, and unemployment figures for that area.  Be alert to homes that are in mortgage default and about to be foreclosed on. You may want to consider properties in pre-foreclosure if you have ample time to wait. Look for properties that don't need major fixes but will benefit from quick, low-cost improvements.  Choose a knowledgeable Realtor who is experienced in investment properties.  Think about joining a real estate investment club to meet a wide variety of professionals.
     
  • Run the numbers:  Get every last expense figured into your calculations, and be sure that you will have positive cash flow from the start. Include repairs, mortgage payments, taxes, insurance, maintenance, management, HOA dues, utilities and reserves.
     
  •  Hire your own professionals:  You may think it would be easier to just utilize the inspectors or appraisal professionals selected by the seller, but it will hurt you in the long run. No one likes spending money on something they could get for free. Nevertheless, it is good to hire individuals that you can truly trust.

It is important to realize that investing in Montgomery AL real estate is not a get-rich-quick scheme and that it does require some work on your part. While appreciation will occur over the long term, you don't know how long that will be. In the meantime, you want to be able to make a profit, or at least not lose money every month.