How to Set Yourself Up for Success When Buying Your First Investment Property
You’ve decided to get into the real estate investment game. Chances are, you’ve read up on the potential benefits of owning a rental property. Now, it’s time to plan and prepare so that you can make sure your first investment property purchase is a true success. Here are some quick tips to consider when buying a property (and managing it once you own it).
Seek Advice from Other Landlords
No matter how much you study up on the art of buying and managing investment properties, nothing can help you prepare more than talking with someone who has experience. Finding a successful landlord to give you advice can help you to make good decisions throughout the whole process — from choosing a property to attracting good tenants. If you have trouble finding someone, consider joining a landlord association.
Think of Proximity
Anyone will tell you how essential it is to choose the right location for your property. And nothing makes for a hot location more than proximity to attractions and activities. If you get a property near the beach, mountains, lakes, or other natural attractions, it’s hard to go wrong. Even if your property isn’t surrounded by natural attractions, it can still be profitable if there are plenty of nearby activities for your target audience (e.g., national parks, restaurants, etc.).
If you’re looking specifically at Charleston as the location for your property, there are many attractions and activities to consider as you try to determine the best neighborhood. As Turnkey points out, there are many boutiques, art galleries, and restaurants in King Street Historic District, as well as swimming and family-friendly activities at Folly Beach. Whichever area you choose to purchase a property, just make sure you showcase the nearby attractions so that you can appeal to more renters.
Go for a Single-Family Home
Single-family homes are the most practical kind when it comes to starting off your real estate investment portfolio. They are much easier to maintain than multifamily or commercial homes, and you have fewer tenants to deal with at one time. Also, there is typically less damage and wear that comes with single-family homes.
Choose a Property with Outdoor Space
A lot of potential tenants will want to know if your property offers an outdoor area. In fact, this is one of the most important factors for some tenants, as they want a place where they can relax outside or invite friends over for barbecues. If your property has an outdoor space, make sure it’s private, and keep the landscaping well maintained.
Market the Property Well
Once you’ve chosen a property, you will need to start thinking of how you will market it. As previously mentioned, you will want to highlight the property’s access to nearby attractions. You will also want to stage the property and get professional photos taken. The better you market your property, the more likely you will keep it occupied.
Get Help from Property Managers
Finally, don’t try to do everything yourself. Hire a property management company to help you with regular maintenance, screening tenants, collecting rent, responding to tenant complaints, and many other important tasks. Working with property managers will help to relieve a lot of the stress that comes with owning a rental property.
If you prepare the right way, buying a rental property can turn out to be a great start to your investment portfolio. Find another landlord (or two) who can offer good advice, and make sure you get a property in a good location. Also, consider starting with a single-family home, get a place with an outdoor area, and devote the necessary time and energy to marketing. Lastly, bring in property managers to carry some of the load of maintaining the property.
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