Although the primary goal of most rental property investors is attaining a regular income stream, ensuring that you build equity in your real estate investments is also key – and the good news is that you don’t necessarily have to pour a lot of money into your units in order to increase their value. This is particularly true if you start out with lower-cost properties in areas that are on the rise.
In larger metro areas like Orlando, for example, you are likely to find properties available in all sizes and price ranges. But by focusing your property purchasing efforts on lower priced homes in good neighborhoods, though, you can more easily find those “hidden gems” that are more apt to rise in value over time.
In keeping with an equity-building strategy, some of the other items to look for when searching for the right property can include:
- A good school district
- A variety of nearby amenities (such as parks, retail and restaurants)
- New construction in the surrounding area (such as offices and retail) as versus a plethora of vacant properties
Although smaller and lower priced properties may not make you rich overnight, they can offer you a great way to start building up equity in real property without having to start out with a lot of capital up front.
You also don’t have to spend a great deal of time finding and managing tenants, or even doing repairs and regular maintenance, if you partner with the right property management team. In fact, by delegating these day-to-day duties, you will have more time to locate and move forward on additional investment properties.
For more details on how working with an experienced property manager can help to take your real estate investing to the next level, give us a call today.