If you’re ready for your investment portfolio to grow, adding real estate as another asset class can protect your wealth through careful diversification among several sectors of the Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston real estate market. In addition, when properly managed, investment property provides a steady income stream that tends to keep pace with inflation to carry you through your retirement. Unlike stocks or other investments you don’t tangibly hold, you remain in control of the real estate, having the power to control the income from your investments.
- Know Your Investment Goals: Before you start searching for properties, it’s important to identify your investment goals. Are you looking for a property to generate monthly rental income, or are you looking for a property to renovate and sell for a profit? Understanding your investment goals will help you narrow down your search and find a property that aligns with your investment strategy.
- Understand Your Financing Options: Real estate investing often requires a significant amount of capital, so it’s important to understand your financing options. You can finance the property through a traditional mortgage, use a home equity loan, or consider private financing options. Make sure you understand the terms of the financing options available to you and choose the one that works best for your financial situation.
- Conduct Thorough Research: It’s important to conduct thorough research before making a real estate investment. This includes researching the local market, understanding the rental rates, and analyzing the property’s potential for future appreciation. Researching the property’s history, including any previous damage, repairs or renovation work can also help you make an informed decision.
- Work with a Professional: Real estate investing can be complex, and there are many details to consider when purchasing an investment property. Working with a real estate agent, property manager or accountant with experience in investment properties can help ensure that you make informed decisions and avoid common pitfalls. They can also provide valuable advice on tax implications, property management, and market trends.
Here are 4 things you should know about buying your first investment property.
Real estate investments make a good fit for anyone willing to put in the time and effort to succeed with myriad sub-sectors and ways to combine outside interests. Your imagination is the only limit on where you take your real estate investment business.
So read on as we explore four things you should know about buying your first investment property in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston.
Location
If you spend time around the real estate industry, you’ve likely heard this rule “location, location, location.” So, the first thing you should know about buying your first investment property in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston: is the location’s importance.
Focusing on the future is essential when it comes to growing your real estate portfolio, and keeping an eye on areas with growth potential is an important part of that process. Johnston County, NC is one such area that may offer opportunities for real estate investors.
Johnston County has experienced significant growth in recent years, with a population that has increased by over 40% since 2000. This growth is largely due to the area’s proximity to Raleigh, the state capital, and the Research Triangle region, which is home to several major universities and research facilities.
In addition to its location, Johnston County has several other factors that make it an attractive location for real estate investors. The area has a relatively low cost of living, which can make it an attractive destination for businesses and individuals looking for affordable housing options. It also has a strong job market, with major employers in industries such as healthcare, education, and manufacturing.
Investors looking to grow their real estate portfolio in Johnston County may want to consider purchasing rental properties, as the area’s growing population and strong job market could drive demand for rental housing. They may also want to look for properties in areas with strong potential for appreciation, such as those that are near revitalization projects or new infrastructure developments.
Research
Educating yourself about the intricate laws governing landlords and real estate isn’t enough.
Conducting thorough research on the local real estate market is a crucial step before purchasing your first investment property in Johnston County or any other location. Understanding the local demand for rentals and estimating realistic rental incomes are important parts of this research process.
To estimate realistic rental incomes, it’s important to research the local rental market and find out what similar properties are renting for in the area. You can use online resources such as real estate websites or property management company websites to find rental listings and average rental rates for different property types in the area.
It’s also a good idea to research the local job market and overall economic conditions in the area. A strong job market and a growing economy can indicate that demand for rental properties is likely to remain high, which may translate to higher rental incomes and appreciation potential for your investment property.
Another important factor to consider is the condition of the property you’re considering purchasing. A well-maintained property with modern amenities is likely to command higher rental rates and attract higher-quality tenants. On the other hand, a property in poor condition may require significant renovations or repairs, which can eat into your potential profits.
In addition to these factors, it’s also important to work with professionals who have experience in the local real estate market, such as investors and real estate professionals at TLC Estate, real estate agents, property managers, and attorneys. These professionals can provide valuable insights and guidance on the local market, rental laws, and other considerations that can impact your investment.
Expectations
Another thing you should know about buying your first investment property in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston is to set realistic expectations about your new business.
To set a realistic budget, it’s important to account for all potential expenses related to the property, both upfront and ongoing. Upfront expenses may include the down payment, closing costs, property inspection fees, and any necessary repairs or renovations. Ongoing expenses may include property taxes, insurance, maintenance costs, property management fees, and utilities.
When setting your budget, it’s also important to account for potential vacancies and bad tenants, which can have a significant impact on your rental income. Many investors recommend setting aside at least 10% of your rental income each month for vacancies and another 10% for repairs and maintenance.
By setting a realistic budget that takes into account all potential expenses, you can ensure that you have the funds available to cover unexpected expenses and weather any financial setbacks that may arise. This can help you avoid running out of funds and potentially losing your investment.
In addition to setting a budget, it’s also a good idea to have a contingency plan in place in case of unexpected expenses. This may involve setting aside emergency funds or having a plan in place for addressing unexpected repairs or vacancies.
By taking these steps and being prepared for the unexpected, you can increase your chances of success and protect your investment when purchasing an investment property.
When reviewing the books of an apartment complex, you’re reviewing the performance of the property management team that understands happy tenants are the most profitable for landlords. With a system for tenant placement and meeting the needs of tenants, even at 3:00 a.m., they tend to stay in place longer, making for better neighbors, meaning you will deal with fewer complaints, and these tenants cause less damage overall.
NC TLC Estate
The benefits of working with the highly seasoned local professional investors at NC TLC Estate are something you should know about buying your first investment property in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston.
These pros can help you locate the best investment property to meet the goals of your strategy to grow your real estate holdings.
In addition, the professional investors at NC TLC Estate work with a full-service in-house team of industry specialists to save time and money. Every team member at NC TLC Estate works with the mindset of an investor.
Our team at NC TLC Estate moves swiftly to provide a complete assessment when locating a potential investment. You’ll also find the most sought-after property management team in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston here at NC TLC Estate, who can help you with everything from tenant screening to on-site property management.
Call NC TLC Estate at 919-920-7081.
By keeping these four things in mind, you can set yourself up for success when purchasing your first investment property. Good luck with your investment journey!