Today, we’re speaking to experienced investors, beginner investors, or anyone who is considering a career in real estate investing. Our focus is on buy and hold investments. When it comes to investing in rental properties, there are three letters that are essential: FFF. These three F’s stand for: Find Them, Fund Them, Fix Them. Funding is actually the most important part of investing in real estate, so we’ll talk about that first.
Investing in Rental Property: Funding
You need to know your budget. Before you can find or fix a rental investment, you need to know how much money you’ll need and where you’re going to get the money. You can pay in cash or take out a loan. There are lots of lender programs that work well for those who want to try investing in homes. You need to know what your budget looks like, and remember you need money in reserves. Investors who don’t have money in reserves really start to worry when they don’t have a tenant in the house.
Investing in a Home: Finding
The next important thing to consider is where you find your rental property investment. This is critical for buy and hold investments. If you’re buying a single family home, you can probably assume you’ll be renting to families. A family is looking at school grades, so research good schools. Look at historic crime data as well. Neighborhoods with high crime statistics can sometimes lead to problems with rent collection or your ability to keep good tenants. Another thing to research is the rental rate. Your ROI is important, and you need to know how much rent you can get. Look for data on how long homes stay rented in that community. Some areas have high turnover and others don’t. You need to consider all these things when you’re looking for a rental investment that you’ll buy and hold.
Property Management Charlotte: Fixing
After that, you have to fix up the property. This is another area where your budget is important. Look at whether there’s damage to the house and what kind of appliances you’ll want to leave. Many investors have stopped leaving garbage disposals in rental properties because there are so many maintenance needs and repair calls associated with disposals.
Take a look at these three F’s and decide which home is best for you to move forward on. If you have any questions about how to invest in rental property or need any advice about Charlotte property management, please contact us at Carolina Living Real Estate and Property Management. We service the entire Charlotte area.
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