Investing in Winston-Salem real estate is an excellent idea. This market is getting a lot of attention because it’s still affordable, home values are increasing, and rental rates are high.
You need to invest in the right property, however, if you want to maximize what you earn and have a profitable investment experience.
We provide Winston-Salem real estate services as well as property investor services, and we want to share some tips and tools on how to identify the best investment properties.
Location Matters When Investing in Real Estate
Location will always be the most important factor when you’re choosing an investment property.
Tenants want to live in desirable neighborhoods close to good schools and within a few minutes of shops, restaurants, grocery stores, and other conveniences.
A well-located rental property will bring in high rents and reliable tenants, which leads to positive cash flow and an impressive return on your investment. Location drives the number of vacant days you’ll have to endure while you’re looking for a well-qualified renter.
Avoid the Fixer-Upper: Condition Matters, Too
Searching for bargains is one way to invest. But, you’ll have to spend a lot of money on renovations and maintenance. That doesn’t exactly put you in a strong starting position.
Think about the work that needs to be done to initially prepare it for the rental market. Have a complete inspection before you close the deal, and make sure you know what you’ll have to spend to get it ready for the market. Estimate what you’ll spend over time, too. If the roof is older and the plumbing system is deteriorating, you’ll need to factor those upgrades into your budget before you buy.
A well-maintained rental home that only needs some cosmetic upgrades is your best option when you’re looking for a good Winston-Salem investment property.
Finding Profitable Winston-Salem Investment Properties
Before you buy, you need to know what you’ll earn and spend on a particular property.
Choose a rental investment property that’s likely to earn you short-term cash flow through consistent and recurring rental income as well as long-term appreciation and equity.
With the right rental home, positive cash flow in Winston-Salem is possible. But it’s not the only way to estimate the value of the property and your potential returns. Positive cash flow sometimes takes a few months and even a few years. Real money will be earned as your rental value increases and your mortgage balance decreases.
Properties in Winston-Salem will always experience rising values and strong appreciation.
You’ll be able to charge more in rent when you upgrade the property. During each turnover period, you’re likely to put new paint on the walls. You might upgrade the floors and install new appliances.
Think about how much your property will be worth when you are finally ready to sell in 10 or 20 years. That appreciation potential will tell you that you’re making a strong investment.
Property Management Services in Winston-Salem
Surrounding yourself with real estate and property management experts is essential to choosing the right investment property. A local Winston-Salem property management company providing property investor services can be an invaluable asset.
You might be thinking that you won’t need a property management partner until you’ve already purchased an investment and you’re ready to rent it out. But, if you contact a property management professional before you buy, you can access our expertise and leverage our professional network and resources. We’re here to help. Contact us at Capstone Realty Consultants.