After your first few investment properties—which you may gain through a combination of great opportunities and your savvy as an investor—many Virginia Beach property owners find that it gets harder to see the 'next big thing.' After all, you want to keep the positive trends of your real estate investment portfolio—but where should you turn for your properties?
- Newly-constructed, single-family homes?
- Multi-family units like a duplex?
If you already work with expert full-service property management, Virginia Beach investors, you may have someone to turn to. If you don't, you may be left with unanswered questions. If you're feeling stranded, you're in luck! The team here at Renters Warehouse has excellent insight into what makes an ideal next step for you as you grow your real estate (or as we like to call it, Rent Estate™) portfolio.
The key—regardless of which type of rental property you might purchase—is to find trustworthy sellers. When you cultivate relationships with honest, clean-dealing individuals in the Virginia Beach area (or beyond our borders), you'll find you have deals offered to you rather than trawling outdated listings on Zillow.
Build Relationships With the Right Wholesaler
Wholesalers, as you may already know, make it their business to connect sellers and buyers since they submit relatively low offers to the seller and then go out and find a buyer themselves who wants the property for a bit more.
While it may seem like you could find those properties yourself and save yourself the upcharge, excellent wholesalers are doing quite a lot of work that you don't necessarily want to do. If you get to know them and let them know what you are looking for, they can do a lot of the portfolio-growth work for you.
Of course, some wholesalers will want to take a massive cut and ask too high a price from you, but you can handle that by finding a different wholesaler whose values and goals are more in line with your own. You should be evaluating the property management services you rely on the same way.
Work With Fix-Flip Investors to Find the Gems
When a potential rental property has significant repairs needed before it can possibly be rented, many investors who are focused on getting their properties ready to rent immediately aren't going to be as interested in taking on that kind of investment.
Unless you love doing DIY repairs yourself or have a skilled team of vendors to help, you probably want to find fix-flip investors who can sell you properties after they take on the tasks of getting that property in excellent condition. Unfortunately, this kind of business connection can present a bit more trouble for investors than your typical wholesaler relationship.
- Fix-flip investors have a different set of priorities in mind when they renovate a property.
- Typically, they are seeking to target long-term homeowners, not the rental community.
- Additionally, they have their own profit margins in mind as part of the outcome of the flip.
- If you want to maximize your relationship with a fix-flip investor, make your needs known beforehand.
- Work with these investors on what kind of updates and upgrades will appeal to renters instead of homeowners.
As with wholesalers, you'll always be on the lookout for investors who are looking to make a quick sale with little more than a new coat of paint—but a good inspection will determine whether the fix-flip investor is really putting the time in. Over time, you'll find investors whose work you trust in the Virginia Beach rental market—and again, they can come to you with their newest acquisition that fits the style or type you are generally interested in.
Once you establish a relationship with these fellow real estate professionals, it still helps to run the numbers by expert property management, Virginia Beach investors, to be sure you're getting the best deal.
When the Turnkey Benefits Are High, Buy New!
In some markets, renovations and repairs are expensive enough—or new builds are affordable enough—that just buying new properties for rent can actually be a great way to invest in properties to add to your portfolio.
New single-family homes or multi-family units have the advantage of a 'what you see is what you get' level of repair, in that they are new and should require minimal upkeep for many years. This saves you money on any fixing and flipping costs, but it also saves you money because it gives you the opportunity to rent it out immediately.
If you are trying to get established and want steady rental income now, new properties can be a tremendous addition to your portfolio.
Control Costs Between Purchases to Maintain Cash Flow
As you add to your portfolio, you'll find that most investors have to take a bit of time to regroup after a significant purchase.
- Cash flow gets tight when preparing a rental property to rent—even with a turnkey, move-in-ready home.
- Keep an eye on places where you can save and spend less during those tight months while you are getting used to a new level of rental income and rental expenses.
- Once your cash flow evens out, any deferred maintenance requests should be promptly scheduled, and any other needed expenses that were only put off for a bit can be put back in the budget.
- Saving up for the next down payment or paying down a mortgage, when it makes sense with your goals, are also practical steps as your portfolio grows.
Keep in mind that the experts in property management Virginia Beach offers (like Renters Warehouse) can be a significant way to control costs as well. Economies of scale also apply to your portfolio—and this can seriously benefit you as a property owner.
Find the Right Rent Estate™ Advisors
Renters Warehouse's Rent Estate™ Advisors provide high-quality, full-service property management for single-family homes and multi-family investment properties. However, we're not just a robust option for property management services!
Whether we're keeping your current properties running smoothly by managing maintenance issues or providing expert advice to help develop your portfolio, we're ready to grow with the needs of your business! We know that most business owners have big plans and a vision—and we want to be part of it!
Sustainable, long-term wealth is within reach when you choose to add more rental homes to your portfolio. Learn more with our free guide, Grow Your Portfolio with a Property Management Company!