Whether you’re making your first real estate investment in Georgia or you’re adding to a growing portfolio, the rental market here provides investors of every level with a lot of options. You can buy a single-family home in an HOA community or a multi-family property with high occupancy rates in a perfect location.
Every investor has different goals. If you’re trying to find that perfect rental investment, you have to know exactly what you’re hoping to gain when you buy it. Review your investment goals and focus on those properties that are aligned with them.
As property managers in Columbus, Georgia, we know a profitable investment when we see one. Here are some of the ways we can spot them.
Location is on Point
This should come as no surprise. Location is perhaps the most important factor in determining whether a rental property will be a successful investment. Study the location and look at the data for that particular location.
Check out the neighborhood and get an idea of what your tenant population will be like. Tenants interested in a low-maintenance apartment unit will likely have different priorities than those looking for a large single-family home with a big yard, so your ideal location will depend on who your ideal tenant is.
Positive Property Condition
Always have a home inspected before you buy it. Consider the structure and foundation. Look for weaknesses that may surprise you later. Don’t worry so much about cosmetic issues; bad paint colors can be fixed and old carpet can be replaced. You want to make sure the property is not going to be a habitability issue now or in the future.
A profitable investment property is also in a condition that makes it move-in ready almost right away. You don’t want to waste time and money with a lot of ongoing upgrades that will be needed before you’re even able to list it.
Modern Upgrades and Amenities
A profitable rental property is modern and updated. Be willing to make these improvements if they’re necessary. Paint and replace the carpets. If the appliances are old, invest in energy-efficient models. Pay attention to the landscaping and the exterior of the house. You’ll need some curb appeal if you want to attract highly qualified tenants and leverage your rental income.
High Rental and Growing Property Values
What you earn every month is an important indicator of whether a rental property is profitable and successful. It’s often hard to earn positive cash flow soon after you invest. However, you should be earning enough rental income that the investment makes sense in your portfolio. The rent you earn should contribute to mortgage payments as well as maintenance, taxes, and insurance.
Invest in homes that can earn what you expect them to. Rental values impact your short-term earnings and your long-term ROI as well.
Appreciation is going to depend on your property value. In the current market, home values are shifting and it can be difficult to know what to expect in terms of how much equity you’ll be able to earn in the first year or the first five years. Profitable rental homes increase in value, and part of that is up to you. You’ll need to be proactive with maintenance and protect the condition of your investment.
Ready to choose a profitable investment property? We can help. Please contact us at Bickerstaff Parham Property Management.
