It’s a commonly held belief, and you’ve probably heard it said and shared many times: real estate is an excellent way to make money and achieve financial wealth.
Saying that is one thing. Doing it is another.
How can you achieve financial independence with your Charlotte investment property?
There are multiple ways to do it. Our best advice is always to buy rental real estate and then hold it as long as you can. The long term financial benefits are always going to be the best. And, when you hold your investment property, you can leverage it to buy additional properties. Before you know it, you’re growing a valuable investment portfolio.
When you own rental real estate in Charlotte, you have the potential to earn some pretty impressive returns over the long term, and that financial independence can help you do a lot of things. Maybe you’re using your real estate investments to plan for retirement or save for your child’s college tuition. Perhaps the goal is to build generational wealth for your entire family.
As you have likely noticed, Charlotte is an opportune market, both for cash flow and appreciation. Your rental value is going to continue rising and your property will appreciate quickly. There are also tax benefits to renting out homes and of course the advantage of having a tenant pay down your mortgage debt.
All of these things help you achieve financial independence.
The best path to success requires that you establish your investment goals, invest wisely, and surround yourself with experts who can help you make good decisions and avoid expensive mistakes.
Establish Goals and Create an Investment Plan
Every investor has their own reason for investing. You have your own ideas about what you want to accomplish and how you want to get there. If you know you’re trying to achieve financial independence, your first order of business may be determining what that looks like to you.
You need to know your own investment goals, and once you know your goals, you need an action plan that will help you to achieve them.
Map out what you’re hoping to accomplish this year, next year, and in the next 10 years. This will drive all your investment decisions from what type of property you buy to how you finance your acquisitions.
Earn Financial Independence by Choosing Profitable Charlotte Investment Properties
To be successful as a real estate investor in Charlotte, you need to understand two important things:
- This is not a get-rich-quick scheme. It’s going to take time to earn some real money.
- You can only build financial independence when you choose the right investments.
You have likely heard stories about rental properties cash flowing right away. It can happen. But, for most investors, seeing a profit will take some time. Getting to the point of financial independence will take even more time.
Can you be patient? You need to be. If you’ve invested in a good property, you started earning money as soon as you closed the deal.
Invest in rental homes that will attract stable tenants and higher rents. Think like a tenant when you’re choosing your rental properties and always make sure you know what you’ll be able to earn in rent and what the expenses are likely to be.
Get Comfortable with Risk When Investing in Charlotte Rental Homes
As with any investment that provides good returns, there are risks when you invest in Charlotte real estate. If you listen to hardcore stock professionals, they’ll tell you that the higher the risk, the higher the return.
That doesn’t always track when we’re talking about investment property, however.
When your goal is to earn financial independence and long-term wealth, you want to stick to an investment strategy with less risk. You need to understand the market and act accordingly.
For example, a rental property that’s somewhat distressed and in a neighborhood that’s not exactly in high demand is a risky investment. But, it’s likely going to be priced well below market. So, it may get your attention. You might think you can rehab it for a huge profit.
Maybe. But, it’s risky.
With a property that needs so much work, you’ll have to invest a lot of resources before you can get that property ready for the rental market. You’re spending money and you’re not earning any money. Your vacancy time will be longer when you’re renovating a property. That’s a big risk. We’d rather see you buy a property that’s in good condition, maybe only needing some cosmetic changes. You won’t have to spend a lot on improvements and more importantly, you’ll get that home on the market and rent coming in much faster.
Think about risk when you’re choosing a property to invest in. Single-family homes generally attract long-term tenants but they also carry more risk than multi-family properties. Why? Because if you do have a vacancy, you aren’t getting any rent at all on a single-family home. But, if you’re renting out a duplex or a four-unit building, one vacancy doesn’t completely cut off your cash flow. You still have rent coming in from other sources.
Prepare to Invest Time and Money in Charlotte Rental Homes
Maybe you’ve heard real estate investments described as passive income. But you’re actually working to earn that financial independence. You’re constantly on the lookout for the right opportunity. You’re following the local market and learning how economic conditions impact your market. You’re looking for tenants and hiring vendors and getting to know the fair housing and security deposit laws.
That’s not passive. It’s actually quite active.
If you’re managing on your own, you’re going to need a lot of time to devote to your properties and your tenants. You’re also going to need resources like:
- A great lease template.
- A network of qualified maintenance vendors who are licensed and insured
- Legal experts if you have to evict
Most investors earn more money and waste less time when they hire a professional Charlotte property management company. Property managers have consistent systems in place and years of expertise.
Risk is always mitigated with a good property manager.
Contact us at AM Realty and we’ll talk more about your unique investment goals and how we can help you earn financial independence with a Charlotte rental home.