Buying a new investment property can feel complex and overwhelming. It’s one of the reasons we always recommend that you surround yourself with professionals, whether you’re buying your first property or you’re an experienced investor working towards a more profitable portfolio.
Don’t be afraid to ask for help when you’re navigating the Warner Robins real estate market. You’ll have to decide what you’re looking for and what you’re planning to do with the investment. Then, you can begin to take steps towards a profitable investment experience.
Identify the Property that Fits Your Portfolio
When you’re investing in real estate, you need to know what you’re looking for and you need to be able to identify it quickly, especially in a competitive market.
Unless you’re planning to occupy the property, make sure you’re thinking like an investor and a tenant. Maybe you live in a home with hardwood floors, granite counters, and a spa bathtub in the master suite. Renters aren’t necessarily demanding those upgrades, especially if it means a higher price tag. Your ideal tenants want a clean, well-maintained home in a great neighborhood for a good price.
Measure the Costs and Benefits of Renovations
A good way to get overwhelmed when buying a property is to choose something that isn’t in the best condition.
Many investors consider buying low-cost homes in need of a lot of work. This is one strategy, and if it fits your investor profile, great. But, if you’re already feeling anxious about the market and your investment, don’t waste time and money on homes that need a lot of work. It will likely lead to a delay in getting your property onto the rental market. While the prices are certain to be attractively low, the amount you’ll have to spend to get that property into rent-ready condition may be more than you expect.
Not only will you have to invest in repairs and rehab, you’ll also wait longer to begin earning rental income.
Crunch Your Numbers and Buy a Profitable Warner Robins Property
Forget emotions and aesthetics and focus on data and numbers. It’s time to let math lead the way when you’re looking for an investment property. You need something that makes sense financially.
Estimate your income and expenses. Make sure those numbers fit into what you need and expect from this investment. Your comfortable cash on cash return and cap rate will depend on your investment goals and what you need to make this purchase work. Run the numbers across several different scenarios. For example, what will happen if you have a vacant property for six months? How will your cash flow be impacted by maintenance work? These are things you need to factor in when you’re determining what you’ll earn and spend on a property.
Professional Warner Robins Property Management
Another important tip to consider when buying a Warner Robins investment property is that you probably need professional help. A good property management company can help you have a better investment experience. You can rely on a property manager’s local expertise and knowledge to estimate the amount of rent you’ll earn and the amount of time it will take to find a great tenant.
A good property manager can also discuss what kind of cosmetic or functional repairs and updates will be needed before the property you’re considering is ready for the rental market. Don’t wait until you’re ready to rent the property out to consult a property manager; find out what you need to know before you buy. We can help. Please contact us at Fickling & Company Property Management.