Winston-Salem is an ideal rental market to grow your investment portfolio. As a rental property owner, you can earn excellent cash flow and long term ROI on just one or two properties. Or, you can really up your game and invest in serious financial wealth by building a portfolio of properties that perform well.
Smart investors know that they have to be thinking about long term and short term goals. If you don’t have established goals and a clear strategy for achieving those goals, you’re not going to know how to look for the right opportunities and where you should buy your next rental home.
If you’re wondering how to do it, we have some ideas.
We also want to help you do it right.
Winston-Salem Real Estate Investing: Acquisitions
Investors want to know when they should buy, and you should actually be prepared to buy any time you find the right opportunity. The market’s strength will play into how you structure and negotiate your deal, but it’s always a good time to invest in Winston-Salem real estate.
We recommend you buy whenever you have the opportunity and when you find a property that meets all of your investment criteria. When you or one of your partners finds a property that meets your criteria and complements your existing portfolio, but it. Leverage your buying power to acquire as many properties as you can.
This market is an ideal place to grow your portfolio, and it’s one of the reason out-of-state investors and even buyers outside of the country are so interested in acquisitions here. Our prices are lower than a lot of other markets on the east coast, but our rents are climbing and so are our property values.
It’s the perfect time to look for new opportunities and acquire additional investments.
Make Sure the Property Matches Your Portfolio
You have to buy the right properties, and they need to complement what you already own.
One mistake that a lot of investors typically make when they’re growing their portfolio is to buy anything that presents itself. Resist the impulse to go after what everyone else is buying. Instead, take your time and find an investment that will bring in some great short term cash and long term returns. You want a home that tenants will be interested in renting.
There can be some competition, and you’ll need to be prepared for that. Sometimes, you have to make 10 offers before one is accepted. Other times, the market will feel wide open and you’ll be tempted to buy everything.
Pace yourself.
Look at every potential acquisition from the standpoint of a potential renter. Make sure you’ll be able to charge the amount of rent you need to ensure the investment makes sense. Consider your expenses; will a lot of work be needed?
Grow Your Portfolio with a 1031 Exchange
A great way to leverage the investment properties you already have is with a 1031 exchange. Under this program, you can sell one property and then defer the capital gains taxes on it by investing the proceeds into another property (or several properties) that are similar.
Maybe you have one investment property that you’re planning to sell because the maintenance expenses have become too high or you’re just not attracting reliable, long-term tenants to that particular neighborhood. If you earn enough money on the sale, you can potentially use the profit to invest in another property or maybe two or three properties. This spares you from having to pay capital gains taxes, and it also gives you extra assets in your portfolio.
We love working with investors to grow. If you have any questions about buying Winston-Salem rental properties, please contact us at Capstone Realty.