A lot of investors are unsure about how the rental market will perform in the U.S. thanks to the ongoing COVID-19 pandemic. It’s hard to know what tenants are thinking and what the economy is going to look like in the New Year.
There’s good news in our local real estate market, however. The single-family real estate market in Winston Salem has remained pretty strong throughout the economic dips over the last year. It’s still a great place to invest, and for buyers seeking single-family homes, Winston Salem provides a lot of great areas that can help boost the performance of any real estate investment portfolio.
Budget for Your Single-Family Winston Salem Rental Property
The first thing you’ll need to establish when choosing the best place to buy is your budget. The amount you are able to spend on your purchase will immediate qualify and disqualify several specific communities.
When you’re doing the math, remember that you’ll have to pay the obvious expenses like your mortgage, taxes, and insurance. There are other costs to investment homes as well, such as:
- Vacancy costs
- Routine and preventative maintenance costs
- Marketing and tenant screening costs
- HOA and association fees
- Winston Salem property management costs
Once you know what you want to spend, you can decide which neighborhoods fit your budget. It will narrow down your options and provide you with strategic opportunities.
The Ideal Winston Salem Tenant
Tenants in Winston Salem aren’t limited to a solitary demographic. The residents in this market range from highly paid entrepreneurs to service workers and teachers. We have students and retirees. All of these potential residents are looking for single-family homes because they offer more space and privacy. They’re likely looking for a great school district or a neighborhood that’s close to commuter routes.
When you’re choosing the neighborhood to invest in, make sure you’re thinking about your likely tenants. Many investors make the mistake of looking for homes that they’d like to live in themselves. Unless you’re targeting high-end tenants and rental values, you probably don’t need granite counters, marble floors, and custom wine cellars in the property you purchase.
Buying in an HOA: Check Association Rules
Before you buy a single-family home in a new construction neighborhood with an HOA, make sure you understand what you’re joining. You have to review and accept the association rules and regulations. There may be rules about pets, extra fees, and high association dues that will have to be factored into your decision. Choosing the association that you buy in will often be just as important as the neighborhood in which it’s located.
Work with a Winston Salem Property Management Company
Before you buy an investment property, talk to an experienced Winston Salem property management company that knows the local market, the laws and regulations, and the industry best practices.
A good property manager will help you estimate how much rent you’re likely to earn, how long it will take you to rent the property, and whether any improvements or upgrades will be necessary before you list it on the rental market. Your property manager partners can also talk to you about which neighborhoods are especially attractive to tenants.
If you’re interested in buying a single-family rental property in Winston Salem, we’d love to talk to you about what’s available. Please contact us at Capstone Realty.