In Part 1, we shared some thoughts about setting goals for your real estate investing venture.
How did that process go for you?
If you haven’t already, please share the number one goal you identified. We love to hear our clients’ dreams and it will help me share insights that might help you achieve yours faster!
Today, we’re going to suggest you be extremely choosy when making decisions about properties. The criteria you use to purchase income properties is different from those used to buy a home of your own.
Here are the criteria you should consider when building your real estate portfolio:
- Location – Tenants will look for things like walkability; public transportation; and distance from restaurants, groceries, schools and parks. There is higher demand for rental housing in high-growth areas. There is consistent demand for rentals near major employers and universities.
- Condition – If you can find a fixer upper in a great location, it may be worth considering, if you can negotiate a great price. The investment of time and effort rehabbing will pay off in higher rents and increased equity. Make sure you have professionals do a thorough inspection. Avoid properties with major health or safety issues unless you have the time and money to deal with these kinds of problems.
- Market – The best time to increase your portfolio is when the sales market dips. You will get a better price on the property and can expect rents to increase when the sales market climbs back up since fewer people can qualify to buy a home when prices get high.
The Capital Street Management team will help you make excellent choices. We’ll help you evaluate potential investment properties and re-evaluate the ones you already own to build a profitable portfolio that’s tailored to meet your top goal. If you have any questions about your current or prospective properties, contact us via phone (973) 849-1638 or email (info@capitalstreetpm.com) to further discuss.
