Whether you’re new to investing in Charlotte real estate or you’ve been buying up rental properties for years, it’s important to determine whether a particular asset is a good investment. To do this, you’ll need to know what your investment goals are. What’s right for one buyer won’t be right for another.
After you’ve set some reasonable and achievable goals, evaluate the property’s location, size, floor plan, and suitability for qualified Charlotte tenants. Run the numbers and if the property is right for you – make an offer. We’re in the middle of a fast-paced real estate market, and you don’t want to wait too long when you identify an opportunity that makes sense.
Here’s how to know if you’re making the right move.
Measure a Potential Property against Your Investment Goals
Evaluating a Charlotte rental property is a process that should start with your investment goals. You can’t know if a particular home is a good rental investment unless you know what you’re hoping to accomplish. Do you want cash flow or is long-term appreciation more important? Are you going to rent the property out to long-term tenants or short-term guests?
It can be tempting to jump on any good deal that comes along. Resist that urge, however, and focus on staying consistent. It will provide better returns for you in both the short and long term.
Choose a Charlotte Rental Investment in a Good Location
You already know that location is perhaps the most important factor when it comes to real estate investments. The location will matter to your property value and it will matter to the tenants who will rent your property. Most of the best renters we work with are looking for a home that’s close to shopping, grocery stores, hospitals, schools, and highways. Some tenants may look for more remote neighborhoods with extra outdoor space, but the large part of your tenant pool will want accessibility.
Walkable neighborhoods are also popular with tenants who are tired of driving and parking. Buy a property that’s not going to welcome a long vacancy period.
Have a Professional Inspection Before You Buy
In our market today, you’re probably hearing stories about cash offers and waived inspections. That might be okay for some investors, but think hard before you give away your rights to a full inspection. A good investment has a good foundation. It doesn’t require a lot of hidden repairs and expensive renovations.
It’s often tempting to buy a fixer upper. After all, the price is usually attractive, and you can get excited about putting your own touches on the home. But, you’ll want to collect rent as soon as possible. Buying a home that isn’t in great condition means that you’ll have to sink a lot of resources into it and spend a lot of time fixing it up. You can’t afford that as an investor.
Look for well-maintained property that is ready to rent right now. Have the home inspected thoroughly by a professional inspector and a local property manager. That will tell you if any repairs or updates will be needed before you list it on the Charlotte rental market.
Look at Projected Income and Expenses
If you’re like most investors, you’re probably looking for an investment property that will earn you some money.
Establish your anticipated rental income and compare this to the expenses you’ll face, including vacancy time, repairs, insurance, taxes, and management fees. Make sure you’re comfortable with the cash flow that you’ll earn. No one invests in property to lose money.
There’s a lot more to consider before you buy an investment property in Charlotte, and the right rental investment will look different to each investor. If you’d like to talk more about your own specific investment goals and how to find the right property, please contact us at AM Realty. We’d love to help you navigate the process.