The excitement about diving into real estate investments can prompt property owners to take advice from some unlikely sources. If, for instance, your first foray into the Virginia Beach rental market was to rent out a home you recently vacated to live elsewhere, you may now be wondering how to find your next substantial investment opportunity.
Unfortunately, a quick tip from someone at a party or an unqualified person putting up flyers around town about a real estate seminar may not yield you the valuable strategies you need. Luckily, a full-service Virginia Beach property management company is a treasure trove of real estate insight—precisely because they see the demand and supply in our local market every day.
Benefit from the expertise we've cultivated through years of experience engaging with the real estate market in the Virginia Beach area! Here are some tried-and-true tips that don't over-promise while under-delivering: what you see is what you get!
Consider the Source When You Get 'Tips'
Our most significant piece of advice is that if you see big, splashy ads or flyers that claim that your real estate investment will make you millions instantly, you're probably looking at something that could be termed a scam.
- Real estate investments can indeed yield seriously profitable returns, and working hard to serve your residents well while keeping the property in great shape will lead to success.
- However, it isn't a get-rich-quick scheme—and any tips that try to make it seem like you'll magically know when to jump in and out of the rental market to net huge gains is likely leading you astray.
- Get into rental property for the right reasons: because you're ready to be a great property investor who earns substantial passive income that has the potential to grow over time through appreciation.
Their Track Record Matters
When you are purchasing a rental property—or, later on, selling off parts of your portfolio—it is worth your time to get to know local investment groups. Generally, seasoned investors in the Virginia Beach area will have gained insights worth sharing from their time in real estate.
For instance, if there is a shoddy company in town that has a reputation for doing inexpensive surface repairs and 'flipping' single-family homes that turn out to have significant problems, you want to know that before you buy from them to grow your portfolio!
As your Virginia Beach property management team, we're always alert to these kinds of companies—and it's why we only work with vetted and dedicated vendors. We know who deals honestly and who has excellent opportunities for future or current investment property owners. We then incorporate this knowledge into our property management services to better benefit the property owners we serve.
If you have the chance, ask your property manager about what they know of the track record of any new professional you're considering working with to further your portfolio. You might learn something incredibly valuable that can protect and preserve your long-term wealth.
Turnkey Rental Properties Offer Incredible Starter Value
While experienced, hard-working investors can turn a fixer-upper into a tidy profit, one of the hardest things to predict about a fixer-upper is the exact cost of all the needed maintenance and repairs.
Just as often as people find a 'diamond in the rough,' investors are frustrated by the discovery of a 'money pit' of a rental home. This is an excellent reason to start off considering turnkey investment properties in such good condition that they are almost or actually move-in-ready when you purchase them.
It's true that these properties cost more—but they cost a fixed, clear amount more. On the other hand, a repair project on a fixer-upper could be orders of magnitude more expensive than you initially estimate—and you can't get your investment value out of it easily without finishing up those repairs. For that reason, getting one or two turnkey properties and starting your rental cash flow that way can be one of the most solid strategies for starting your business.
Don't forget to consider new construction as an option, as well. In certain neighborhoods across the Virginia Beach area, new construction may actually be more affordable (and reliable) than a complete property renovation. The only downside is that you'll need to thoroughly investigate whether these new builds have features that your renters actually want.
Stay on Track With Full-Service Property Management
Property managers in Virginia Beach do so much more than check on maintenance issues! Not only do they market your property, handle tenant screening, and manage rent collection, they take on a lot of the go-between discussions that property owners and residents have, saving you crucial time. The things that local teams understand about the Virginia Beach rental market could fill a book!
Here at Renters Warehouse Hampton Roads, we pride ourselves on being an incredible asset to property owners who are planning a new move in your real estate investment plan. We cannot tell you the direction to take your business since you know what you want, but we can help give you valuable context from our years of experience working as a Virginia Beach property management company. We want our property owners to succeed, and we're ready to show you how we can make that happen.
Looking for additional tips and help with your growing real estate investment business? Our blog is full of valuable articles on various relevant topics, and our longer downloadable resources are a treasure trove of real estate information. A great place to start is with our free Real Estate Investing Guide to Growing Your Portfolio With a Property Management Company!